List and describe at least three advantages accrue to the user of commercial paper.

 1. Interest rate: commercial paper rates are generally lower than rates on bank loans and comparable sources of short-term financing; 2. Compensating-balance requirement: no minimum balance requirements are associated with commercial paper. However, issuing firms usually find it desirable to maintain line-of-credit agreements sufficient to back up their short-term financing needs in the event that a new issue of commercial paper cannot be sold or an outstanding issue cannot be repaid when due.
3. Amount of credit: commercial paper offers the firm with very large credit needs a single source for all its short-term financing. Because of loan amount restrictions placed on the banks by the regulatory authorities, obtaining the necessary funds from a commercial bank might require borrowing from a number of institutions; 4. Prestige. Because it is widely recognized that only the most creditworthy borrowers have access to the commercial paper market, its use signifies a firm's credit status.
 

I wanna give this person a hug.