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CTP · Question #521

(Topic 6) Which of the following is NOT characteristic of commercial paper with a term of less than 270 days?

The correct answer is D. It must be registered with the SEC. See the full explanation below for the reasoning.

Question

  • (Topic 6)

Which of the following is NOT characteristic of commercial paper with a term of less than 270 days?

Options

  • AIt is usually sold through a dealer.
  • BIt is considered an unsecured promissory note.
  • CIt typically costs less than bank debt.
  • DIt must be registered with the SEC.

How the community answered

(34 responses)
  • A
    12% (4)
  • B
    3% (1)
  • C
    9% (3)
  • D
    76% (26)

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