Commercial paper has become an acceptable substitute source for bank loans for many large corporations.

Question

Quizplus · Accepted Answer

This statement is true. Commercial paper is a short-term, unsecured promissory note issued by corporations to raise funds for working capital or other short-term financing needs. Many large corporations use commercial paper as an alternative to bank loans because it can often be issued at a lower cost and with less restrictive covenants.

Commercial Paper Has Become an Acceptable Substitute Source for Bank