Q402
Financial instrument such as commercial paper can be sold
A.
issued by commercial banks
B.
directly
AnswerC.
with brokers or dealers
D.
functional buyers
Answer: Option B
Solution
Answer: Option B
Solution:
Financial instrument such as commercial paper can be sold directly. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities. Maturities on commercial paper rarely range longer than 270 days.