Financially stable firms are able to sell commercial paper to raise short-term funds.

Name: Financially stable firms are able to sell commercial paper to raise short-term funds.
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Question

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Commercial paper consists of unsecured promissory notes in amounts of $100,000 and up that mature in 270 days or less. Since it offers no collateral, only financially stable firms are able to sell commercial paper.

Financially Stable Firms Are Able to Sell Commercial Paper to Raise