Commercial paper is a short-term security issued by __________ to raise funds.
A) the Federal Reserve
B) commercial banks
C) large well-known companies
D) the New York Stock Exchange

Question

Quizplus · Accepted Answer

Commercial paper is typically issued by large well-known companies with excellent credit ratings. The purpose of commercial paper is to raise short-term funds for the issuer. While commercial banks may be involved in the issuance of commercial paper, they are not the primary issuer. The Federal Reserve and the New York Stock Exchange are not involved in the issuance of commercial paper.

Commercial Paper Is a Short-Term Security Issued by __________ to Raise