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When a large amount of money is needed for a short amount of time, ________ is used as a short-term ...
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When a large amount of money is needed for a short amount of time, ________ is used as a short-term ...
When a large amount of money is needed for a short amount of time, ________ is used as a short-term promissory note to repay a borrowed amount by a specified time with a specified interest rate.
▸ corporate bond
▸ factoring
▸ trade credit
▸ lease agreement
▸ commercial paper
Textbook
Business in Action
Edition:
9
th
Authors:
Bovee, Thill
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commercial paper
Commercial paper refers to short-term promissory notes, or contractual agreements, to repay a borrowed amount by a specified time with a specified interest rate. Commercial paper is usually sold only by major corporations with strong credit ratings, in denominations of $100,000 or more and with maturities of up to 270 days.
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