SIE Exam Question 747: Answer and Explanation
Question: 747
Which of the following is correct regarding commercial paper?
- A. It has a maturity of 270 days or less.
- B. It's issued in denominations of $1,000 or more.
- C. It does not act as a viable substitute for short-term bank financing.
- D. It has less default risk than Treasury bills.
Correct Answer: A
Explanation:
Commercial paper has a maturity of 270 days or less and is issued in denominations of $100,000 or more.
Test Information
- Use your browser's back button to return to your test results.
- Do more SIE Practice Tests tests.
More Tests
- SIE Exam Practice Test 1
- SIE Exam Practice Test 2
- SIE Exam Practice Test 3
- SIE Exam Practice Test 4
- SIE Exam Practice Test 5
- SIE Exam Practice Test 6
- SIE Exam Practice Test 7
- SIE Exam Practice Test 8
- SIE Exam Practice Test 9
- SIE Exam Practice Test 10
- SIE Exam Practice Test 11
- SIE Exam Practice Test 12
- SIE Exam Practice Test 13
- SIE Exam Practice Test 14
- SIE Exam Practice Test 15
- SIE Exam Practice Test 16
- SIE Exam Practice Test 17
- SIE Exam Practice Test 18
- SIE Exam Practice Test 19
- SIE Exam Practice Test 20