2.Which of the following is NOT an aspect of commercial paper? (A)They are sold with no...

2.Which of the following is NOT an aspect of commercial paper?

(A)They are sold with no more than 270 days to maturity.

(B)Liquidity “dries up” beyond about 90 days to maturity.

(C)They are backed by a revolving line of credit.

(D)They can be issued by companies that have credit ratings of at least B (“Single B”)

Expert Solution

Commercial paper is a unsecured form of promissory note which is not backed by any kind of collateral, so if it is said that they are backed by a revolving line of credit then it is a complete false statement.

All the other statements are true

Correct answer will be option ( C) they are backed by revolving line of credit.

jeff jeffy answered 2 years ago

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