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The major disadvantage of commercial paper is:

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The major disadvantage of commercial paper is:

 Options:

A. the continued availability of funds is less certain than with bank financing
B. that there is no secondary market for commercial paper
C. firms must maintain an account balance equal to the paper outstanding
D. commercial paper is normally issued with a floating interest rate

 

The Correct Answer Is:

  • A. the continued availability of funds is less certain than with bank financing

 

Conclusion

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