Question

Which of the following debt instruments are issued by a company

Which of the following debt instruments are issued by a company in the Money Markets to finance working capital investments (short term) - like inventory to sell to customers? 


A. Corporate notes or bonds (long-term debt securities w/ greater than 1 year) 

B. Short-term debt from financial institutions (i.e., bank line of credit) 

C.Commercial paper issued by the company. 

D. Treasury bills 

E. B. and C 

F.All of the above.

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Answer #1

Answer: Option E: B and C

Short term loans or commercial papers arise on a business's balance sheet when the company needs quick financing in order to fund working capital needs. Both have financial obligation either due within a 12-month period or due within the current fiscal year.

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