BANKING AFFAIRS

Detailed explanation-1: -Commercial paper issued with low interest rate thus commercial paper are categorized as better credit rating. Higher scores represent better credit decisions and can make creditors more confident that you will repay your future debts as agreed.

Detailed explanation-2: -Commercial Paper Rating Definitions A Standard & Poor’s commercial paper rating is a current assessment of the likelihood of timely payment of debt having an original maturity of no more than 365 days. Commercial Paper Rating is one if the firm has such a rating and zero otherwise.

Detailed explanation-3: -There are four types of commercial paper: promissory notes, drafts, checks, and certificates of deposit (CDs).

Detailed explanation-4: -Detailed Solution. The correct answer is 1 only. A Commercial Paper (CP) is an unsecured loan raised by firms in money markets through instruments issued in the form of a promissory note.

Detailed explanation-5: -Commercial paper is an unsecured, short period debt tool issued by a company, usually for the finance and inventories and temporary liabilities. The maturities in this paper do not last longer than 270 days.