Which of the following is a correct statement about commercial paper?
A. Commercial paper is a type of secured promissory note issued by banks to small firms.
B. The use of commercial paper is limited to a relatively small number of firms that are exceptionally good credit risks.
C. Maturities of commercial paper vary from two years to four years.
D. The interest a firm pays on its commercial paper normally is higher than the interest it pays on its long-term bonds.
E. Commercial paper normally is issued by firms with high financial risks.
Answer: B
You might also like to view...
Even though we may have a strong positive or negative attitude about something or someone, behavior intention does not necessarily predict our behavior. As stated in the textbook, what two elements may intervene? Give an example.
What will be an ideal response?
Trump Company Other revenues $110,000 General and administrative expenses $250,000 Dividends $120,000 Gross profit $750,000 Selling expenses $220,000 Income tax expense $117,000 Refer to the information provided for Trump Company. By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Trump Company prepares both formats?
A) $12,000 B) $8,000 C) $0 D) $6,000
Which of the following is a marketing intermediary?
A) customers B) producers C) manufacturers D) retailers E) advertisers
Roxie, a recently-appointed frontline manager, has always been praised for her moral awareness, judgment, and character. However, turning in her own boss, a division manager, for fraudulent behavior will be very difficult for her to do. Roxie knows that she will need to draw upon every bit of ________ that she can muster.
A. candor B. self-righteousness C. tact D. courage E. defiance