Banker's acceptances are financial assets sold by a company directly to investors, like bonds and common stock, but with very short maturity dates, while commercial paper is for self-liquidating inventories
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: COMMERCIAL PAPER is a financial asset sold by a company directly to investors, like bonds and common stock, but with very short maturity dates. BANKER'S ACCEPTANCES are for self-liquidating inventories. For example, a car dealer may finance imports with a banker's acceptance. As the import cars are sold and generate cash flow, the car dealer pays off the loan.
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