Which of the following statements is true of commercial paper?
A) It cannot be used as a means of extending credit.
B) It is covered in Article 5 and Article 6 of the Uniform Commercial Code.
C) It can be accepted as a substitute for money.
D) It lacks the attribute of negotiability.

Question

Quizplus · Accepted Answer

Commercial paper is basically a contract for the payment of money. It may serve as a substitute for money payable immediately, such as a check, or it can be used as a means of extending credit.

Which of the Following Statements Is True of Commercial Paper