Question

_________ offers financially stable corporations a technique to raise short-term funds by issuing unsecured promissory notes to the general public with the promise of repayment within 270 days.

Answer 1

The correct answer is letter "D": Commercial paper.

Step-by-step explanation:

Commercial Paper is a short-term debt instrument issued by financial institutions and major companies. The business guarantees a return or profit to the borrower for making the loan. The return is expressed as an interest rate or loan percentage.

Most commercial papers range from one (1) to six (6) months but some ripen up to nine (9) months or 270 days. Debt under a maturity duration of 270 days does not require registration with the Securities and Exchange Commission (SEC).