For firms that are able to raise funds through the sale of commercial, it is generally cheaper than if the same firm were to borrow from a commercial bank.

Name: For firms that are able to raise funds through the sale of commercial, it is generally cheaper than if the same firm were to borrow from a commercial bank.
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Question

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Selling commercial paper allows firms to raise funds at lower interest rates compared to borrowing from commercial banks, hence it is generally cheaper for them.

For Firms That Are Able to Raise Funds Through the Sale