Which of the following is a short-term,unsecured promissory note issued by a corporation with a very high credit standing?
A)negotiable certificate of deposit
B)repurchase agreement
C)money market mutual fund
D)commercial paper

Question

Quizplus · Accepted Answer

Commercial paper is a type of short-term, unsecured promissory note issued by a corporation with a very high credit rating. It is typically used to finance short-term liabilities such as payroll expenses, accounts payable, and inventory purchases. Commercial paper is usually issued with maturities ranging from 1 to 270 days and is sold at a discount to face value to investors, who earn a return by holding the paper until maturity.

Which of the Following Is a Short-Term,unsecured Promissory Note Issued