Question

Commercial paper isa. ) loans made by commercial banks b.) loans made by the federal reserve bank to its members c.) a corporations short term notes d.) a corporations long term notes

Answer 1

Answer: a corporations short term notes

Explanation: Commercial paper can be defined as the money market security having maturity of less than 270 days. These are not backed by any collateral thus these could be issued by large companies having high credit worth in the market.

These are issued by corporations for coping with its short term obligations.

These are guaranteed by the issuing company.