SIE Exam Question 283: Answer and Explanation

Question: 283

What is the maximum maturity for commercial paper?

• A. 30 days
• B. 180 days
• C. 270 days
• D. 360 days

Correct Answer: C

Explanation:

C: Commercial paper will not exceed 270 days to maturity in order to avoid registration with the SEC. Registration is a costly endeavor, requiring legal counseling and significant amounts of paperwork. A corporation will avoid registration if possible.