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What are the advantages of commercial paper in comparison with bank borrowing at the prime rate?
In comparison to bank borrowing, commercial paper can generally be issued at below the prime rate. Furthermore, there are no compensating balance requirements, though the firm is required to maintain approved credit lines at a bank. Finally, there is a certain degree of prestige associated with the issuance of commercial paper.
Why is the rate for three-month commercial paper higher than that for three month T-Bills?
I believe the returns on T Bills are guaranteed , whereas on commercial papers they arent.
What toilet paper commercial did a woman fall on toilet paper?
It was the Cocacola commercial
Advantages and disadvantages of commercial paper?
The advantage of commercial paper is the ability for people to have access to the use of the product. The disadvantage of commercial paper is the use of natural resources that may become depleted.
Where can I buy a commercial toilet paper dispenser?
You can order a commercial toilet paper dispenser online from a website such as www.globalindustrial.com. You can also purchase a new or used commercial toilet paper dispenser from Amazon.com.
What is Difference between Base Rate and prime rate?
The prime rate is the rate at which the central bank lends to the commercial banks whiles the base rate is the rate at which the commercial banks lend to the public
What day-count convention is used for commercial paper?
Actual/360 is the day-count convention used for commercial paper.
What is the deffination of interest rate?
INTEREST RATE IS THE RATE AT WHICH LOANS AND ADVANCES ARE GIVEN BY THE COMMERCIAL BANKS TO GENERAL PUBLIC. INTEREST RATE IS THE RATE AT WHICH LOANS AND ADVANCES ARE GIVEN BY THE COMMERCIAL BANKS TO GENERAL PUBLIC.
What is the rate of interest?
INTEREST RATE IS THE RATE AT WHICH LOANS AND ADVANCES ARE GIVEN BY THE COMMERCIAL BANKS TO GENERAL PUBLIC. INTEREST RATE IS THE RATE AT WHICH LOANS AND ADVANCES ARE GIVEN BY THE COMMERCIAL BANKS TO GENERAL PUBLIC.
What is the meaning of reverse repo rate?
repo rate - is the interest rate that reserve bank use to charge commercial banks repo rate - is the interest rate that reserve bank uses to charge commercial banks
Where can on purchase commercial paper for printing?
Commercial paper is best purchased from a big box store that offers discounts for buying in bulk. Staples, Office Max, and even Costco offer discounts for purchasing large quantities of commercial paper.
What types of firms issue commercial paper What are the characteristics critical to being able to issue commercial paper?
Commercial banks act as agents in issuing paper, holding it for safekeeping and facilitate payment in federal funds. Most of the firms sell their paper through dealers. Only large, well-known firms of the highest credit standing, and lowest default risk can issue commercial paper because paper is an unsecured promissory note.
