Which of the following is the term used to describe debt issued by state and local government which has a maturity of one to six months?
A) certificates of deposit
B) banker's acceptances
C) commercial paper
D) short-term tax exempts

Question

Quizplus · Accepted Answer

Short-term tax exempts are debt issued by state and local government with a maturity of one to six months which is exempt from federal income tax. Certificates of deposit are issued by banks, banker's acceptances are short-term debt instruments used in international trade, and commercial paper is typically issued by corporations with a maturity of up to 270 days.

Which of the Following Is the Term Used to Describe