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Commercial paper A. Ordinarily does not have an active secondary market. B. Is usually sold only through investment banking dealers. C. Has an interest rate lower than Treasury bills. D. Has a maturity date greater than 1 year.

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Answer: A. Ordinarily does not have an active secondary market

Step-by-step explanation:

Commercial paper is a promissory note that is unsecured and pays a fixed interest rate. Commercial paper can be sold by big banks and also by corporations in order for them to cover their short-term receivables and also for them to be abke to meet their short-term financial obligations.

Commercial paper is for short-term basis and rarely lasts for more than 9 months. It should be noted that commercial paper is not as liquid as the treasury bills, dur to the fact that it does not ordinarily have a secondary market that is active.

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