For firms that are able to raise funds through the sale of commercial paper, it is generally cheaper than borrowing from a commercial bank.

Name: For firms that are able to raise funds through the sale of commercial paper, it is generally cheaper than borrowing from a commercial bank.
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Question

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Commercial paper typically has lower interest rates and fewer fees compared to bank loans, making it cheaper for firms to raise funds through commercial paper sales.

For Firms That Are Able to Raise Funds Through the Sale