Question
In: Finance
Commercial paper is? Multiple Choice A) a time draft payable to a seller of goods, with...
Commercial paper is?
Multiple Choice
A) a time draft payable to a seller of goods, with payment
guaranteed by a bank.
B) short-term funds transferred between financial institutions
usually for no more than one day.
C) a short-term unsecured promissory note issued by a company to
raise funds for a short time period.
D) a loan to an individual or business to purchase a home, land, or
other real property.
E) a marketable bank-issued time deposit that specifies the
interest rate earned and a fixed maturity date.
Solutions
Expert Solution
Commercial paper is an unsecured money market instrument issued in the form of promissory notes for short-term finance.
It is generally issued by investment-grade banks and corporations
It is generally issued at a discount to face value and redemption at the face value
It is generally issued for the period up to 9 months
It will be regulated by the Federal Reserve bank
The answer is an option (C) a short term unsecured promissory note issued by a company to raise funds for a short time period
jeff jeffy answered 2 years agoRelated Solutions
in dollars outstanding in 2016, the largest money market security was Multiple Choice commercial paper. banker's...
in dollars outstanding in 2016, the largest money market
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acceptances. T-bills. Fed funds and repos.
The Uniform Commercial Code does not allow a seller to resell or dispose of the goods...
The Uniform Commercial Code does not allow a seller to resell or
dispose of the goods when the buyer is in breach and the goods have
not yet been delivered; instead, the seller must seek an order of
specific performance against the breaching buyer.
True or False
(Cost of commercial paper) Tri-State Enterprises plans to issue commercial paper for the first time in...
(Cost of commercial paper) Tri-State Enterprises plans to issue
commercial paper for the first time in the firm's 35-year history.
The firm plans to issue $400,000 in 270-day maturity notes. The
paper will carry a 10.25 percent rate with discounted interest and
will cost Tri-State $11,000 (paid in advance) to issue. Note:
Assume a 30-day month and 360-day year.
a. What is the effective cost of credit to Tri-State?
b. What other factors should the company consider in analyzing
whether...
A call option contract: Multiple Choice A obligates both the buyer and the seller. B obligates...
A call option contract:
Multiple Choice
A obligates both the buyer and the seller.
B obligates the buyer but not the seller.
C grants rights to the buyer and obligates the seller.
D grants rights to the seller and obligates the buyer.
E grants rights to both the buyer and the seller but does not
obligate either party.
draft a contract for the sale of goods
draft a contract for the sale of goods
You will represent either the Purchaser (Acme, Inc.)or the Seller (I.M. Seller). Draft a letter...
You will represent either the Purchaser (Acme, Inc.)or the Seller (I.M. Seller). Draft a letter to your client
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Draft a paper-based survey for correctional.
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A buyer purchases goods from an online seller. The goods will be delivered from the seller...
A buyer purchases goods from an online seller. The goods will be
delivered from the seller to the buyer under a shipment contract.
The title to the goods will pass from the seller to the buyer
when...
(a) seller delivers the goods to the carrier
(b) goods arrive at the buyer's stetted address
(c) buyer takes actual possession of the goods
(d) buyer receives a receipt from the seller
(e) buyer pays the seller for the goods
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A buyer purchases goods from an online seller. The goods will be
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The title to the goods will pass from the seller to the buyer
when
Select one:
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c. buyer takes actual possession of the goods
d. buyer receives a receipt from the seller
e. buyer pays the seller for the goods
A contingent liability is: Multiple Choice An obligation arising from the purchase of goods or services...
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Multiple Choice
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An obligation arising from a future event.
An obligation not requiring future payment.
A potential obligation that depends on a future event arising
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Always of a specific amount.
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