The answer to the multiple choice question "Commercial paper is backed by" is "the name and reputation of the issuing company."

Here's why:

Commercial paper is a type of unsecured, short-term debt instrument issued by corporations, typically for the financing of payroll, accounts payable and inventories, and meeting other short-term liabilities.

1. The current exchange rate on the stock exchange: This is not correct because commercial paper is not directly linked to the stock exchange or any exchange rate.

2. The Better Business Bureau: This is not correct because the Better Business Bureau is not involved in the backing or guaranteeing of commercial paper.

3. The name and reputation of the issuing company: This is correct. Commercial paper is unsecured, meaning it is not backed by any collateral. Therefore, the creditworthiness of the issuing company, which is often gauged by its reputation and financial stability, is crucial.

4. The federal government: This is not correct because commercial paper is a corporate debt instrument and is not backed by the federal government.

Question

The answer to the multiple choice question "Commercial paper is backed by" is "the name and reputation of the issuing company."

Here's why:

Commercial paper is a type of unsecured, short-term debt instrument issued by corporations, typically for the financing of payroll, accounts payable and inventories, and meeting other short-term liabilities.

1. The current exchange rate on the stock exchange: This is not correct because commercial paper is not directly linked to the stock exchange or any exchange rate.

2. The Better Business Bureau: This is not correct because the Better Business Bureau is not involved in the backing or guaranteeing of commercial paper.

3. The name and reputation of the issuing company: This is correct. Commercial paper is unsecured, meaning it is not backed by any collateral. Therefore, the creditworthiness of the issuing company, which is often gauged by its reputation and financial stability, is crucial.

4. The federal government: This is not correct because commercial paper is a corporate debt instrument and is not backed by the federal government.

Knowee AI · Accepted Answer

The answer to the multiple choice question "Commercial paper is backed by" is "the name and reputation of the issuing company."

Here's why:

Commercial paper is a type of unsecured, short-term debt instrument issued by corporations, typically for the financing of payroll, accounts payable and inventories, and meeting other short-term liabilities.

1. The current exchange rate on the stock exchange: This is not correct because commercial paper is not directly linked to the stock exchange or any exchange rate.

2. The Better Business Bureau: This is not correct because the Better Business Bureau is not involved in the backing or guaranteeing of commercial paper.

3. The name and reputation of the issuing company: This is correct. Commercial paper is unsecured, meaning it is not backed by any collateral. Therefore, the creditworthiness of the issuing company, which is often gauged by its reputation and financial stability, is crucial.

4. The federal government: This is not correct because commercial paper is a corporate debt instrument and is not backed by the federal government.

Multiple Choice QuestionCommercial paper is backed byMultiple choice question.the current exchange rate on the stock exchange.the Better Business Bureau.the name and reputation of the issuing company.the federal government.

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