American_Bankers_Association
CTFA · Question #109
Commercial paper is essentially:
The correct answer is B. A short-term unsecured corporate IOU. See the full explanation below for the reasoning.
Investment Management
Question
Commercial paper is essentially:
Options
- AAnother form of junk bond
- BA short-term unsecured corporate IOU
- CAn intermediate-term corporate bond
- DA certificate that may be exchanged for a share of common stock at a specified future date
How the community answered
(26 responses)- A4% (1)
- B81% (21)
- C12% (3)
- D4% (1)
Topics
#commercial paper#money market instruments#short-term debt#unsecured corporate debt
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