Which of the following comparisons between short-term bank loans is correct?
A)Commercial paper interest rates are usually slightly higher than rates on bank loans.
B)Commercial paper is only appropriate for firms requiring a limited amount of short-term financing,while banks can offer substantially larger amounts of funds.
C)Banks demand that borrowers meet exacting credit-worthiness tests,while the lenders that purchase commercial paper are less strict.Only the most credit-worthy borrowers have access to bank loans.
D)None of the above.

Question

Quizplus · Accepted Answer

None of the provided comparisons are correct. Commercial paper typically has lower interest rates than bank loans, is used by highly creditworthy firms, and can involve substantial amounts of financing.

Which of the Following Comparisons Between Short-Term Bank Loans Is