Commercial paper offers the borrower the same flexibility that exists when bank credit is used to meet financing needs.

Question

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Commercial paper is a short-term, unsecured promissory note issued by corporations with high credit ratings to finance short-term liabilities, offering less flexibility compared to bank credit, which can be tailored to the borrower's specific needs in terms of amount, duration, and repayment terms.

Commercial Paper Offers the Borrower the Same Flexibility That Exists