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Management · Q993

Financial Management

Graduate and Post Graduate · Management · question 993

Q993

Low default-risk security issued by financially secure firms is classified as

A.
U.S treasury bills
B.
commercial paper
Answer
C.
certificate of deposit
D.
mutual funds

Answer: Option B

Solution

Answer: Option B
Solution:
Low default-risk security issued by financially secure firms is classified as commercial paper. 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.