Commercial paper
A) rates are generally higher than rates on bank loans and comparable sources of short-term financing.
B) generally has a minimum compensating balance requirement.
C) offers the firm with very large credit needs a single source for all its short-term financing.
D) has all of the properties stated above.

Question

Quizplus · Accepted Answer

Commercial paper is typically used by firms with large credit needs as a single source for short-term financing, often at lower rates than bank loans.

Commercial Paper