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________ is a short-term security, or note, containing a borrower's promise to pay.

A: A trade draft
B: Equity financing
C: Commercial paper
D: Leverage

Respuesta :

Whole test

1. identify the risk and potential losses

2. Liability

3. insurance covering losses resulting from medical and hospital expenses as well as income lost form injury or disease.

4. Commercial paper

5. Equity financing

6. Bonds

7. Cash-flow management, financial control, and financial planning

8. Debt financing

9. insurance

10. Risk- return relationship

chilljain33

C- A commercial paper is a short termed security, or note, containing a borrower's promise to pay such amount due to him towards the person who has drawn such commercial paper or any other person as such.

The commercial paper is a short term security paper. It is given generally as a part of customs that have been followed by the businessmen from ages and the practice has passed on to generations.

  • This way of giving short term credits to the traders is a commonly followed activity so as the cash can be returned back to the seller as soon as the goods are resold and amount due has been received.

  • The commercial paper is an ideal way of credit facility but limits its circulation only to certain specific region unlike credit facilities given by commercial banks.

  • The person who draws such paper is known as a drawer and the person on whom such bill is drawn is known as drawee. Drawee is under obligation to pay to such payee in the paper as soon as he signs such bill.

Hence, the correct option is C that the Commercial paper is a short term security or a note containing a borrower's promise to pay such amount due to him.

To know more about commercial paper, click on the links below.

https://brainly.com/question/14097946