[blank] is money market security with a maturity of 7 to 270 days, issued by large banks and corporations, and backed by the issuing firm's promise to pay the face amount on the maturity date specified on the note.
A)Float
B)Line of credit
C)Commercial paper
D)Factor

Question

Quizplus · Accepted Answer

Commercial paper is a short-term money market security with a maturity ranging from 7 to 270 days. It is issued by large corporations and banks, and it is backed by the issuer's promise to pay the face amount of the note on the maturity date. This type of security is typically used by companies to meet short-term funding needs, such as inventory purchases or payroll expenses.

[Blank] Is Money Market Security with a Maturity of 7