The majority of commercial paper is issued by
A) public utilities.
B) non-financial firms.
C) the U.S. Treasury.
D) financial companies.

Question

Quizplus · Accepted Answer

The majority of commercial paper, a type of unsecured, short-term debt instrument, is issued by financial companies. This is because financial institutions often have short-term financing needs and use commercial paper as a way to obtain funds quickly and relatively inexpensively.

The Majority of Commercial Paper Is Issued by