Question

Commercial paper is Multiple Choice a time draft payable to a seller of goods, with payment guaranteed by a bank. a marketable bank-issued time deposit that specifies the interest rate earned and a fixed maturity date. short-term funds transferred between financial institutions usually for no more than one day. a loan to an individual or business to purchase a home, land, or other real property. a short-term unsecured promissory note issued by a company to raise funds for a short time period

Answer 1

A short-term unsecured promissory note issued by a company to raise funds for a short time period.

Step-by-step explanation:

This is explained to be a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date. A promissory note typically contains all the terms pertaining to the indebtedness, such as the principal amount, interest rate, maturity date, date and place of issuance, and issuer's signature.

This source can be an individual or a company willing to carry the note (and provide the financing) under the agreed-upon terms. In effect, anyone becomes a lender when he issues a promissory note.