Commercial paper [blank].
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 that 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 large firms to meet short-term financing needs and is often cheaper than bank loans, with no compensating balance requirement.

Commercial Paper [Blank]