The principal issuer of the commercial papers are commercial banks and the major investors of principal investors includes ____________?

Correct answer: D. all of the above

  • A. brokers and dealers
  • B. corporations
  • C. other financial institutions
  • D. all of the above

Explanation

Commercial paper is bought by a broad group of money-market investors, including corporations, financial institutions, brokers, and dealers. Therefore, all the listed groups may be major investors.

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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.

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