Funds available to corporate issuers of commercial paper come from which market? O A. capital O B. equity O C. federal funds O D. money E. secondary

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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**Question:**

Funds available to corporate issuers of commercial paper come from which market?

**Options:**

- A. capital
- B. equity
- C. federal funds
- D. money
- E. secondary

**Explanation:**

In this multiple-choice question, you are asked to identify the market from which corporate issuers of commercial paper obtain funds. 

- **Capital Market:** Generally deals with long-term securities, such as stocks and bonds.
- **Equity Market:** Pertains to the buying and selling of shares or equities.
- **Federal Funds Market:** United States market for overnight borrowing and lending of federal funds.
- **Money Market:** Deals with short-term borrowing and lending, often used for commercial papers. This is typically the correct answer.
- **Secondary Market:** Involves trading previously issued securities.
Transcribed Image Text:**Question:** Funds available to corporate issuers of commercial paper come from which market? **Options:** - A. capital - B. equity - C. federal funds - D. money - E. secondary **Explanation:** In this multiple-choice question, you are asked to identify the market from which corporate issuers of commercial paper obtain funds. - **Capital Market:** Generally deals with long-term securities, such as stocks and bonds. - **Equity Market:** Pertains to the buying and selling of shares or equities. - **Federal Funds Market:** United States market for overnight borrowing and lending of federal funds. - **Money Market:** Deals with short-term borrowing and lending, often used for commercial papers. This is typically the correct answer. - **Secondary Market:** Involves trading previously issued securities.
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