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.

All content of site and practice tests © 2022 Jack.
Quick View

FINRA Practice Tests