answersLogoWhite

0


Best Answer

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.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What types of firms issue commercial paper What are the characteristics critical to being able to issue commercial paper?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

What is the most critical issue currently facing management?

One of the most critical issues facing management is how to bring all workers or members of the team to achieve a common goal. Having sound policies and realistic goals is another critical issue.


How does one become a commercial loan officer?

In order to find out about a commercial loan officer one can go to the relevant website and get information. Also one can get more information from the library books about this issue. Alternatively one can consult an expert in this subject to get detailed information in this field.


Advantages and disadvantages of commercial bills?

§ High credit ratings fetch a lower cost of capital. § Wide range of maturity provide more flexibility. § It does not create any lien on asset of the company. § Tradability of Commercial Paper provides investors with exit options. Disadvantages of commercial paper: § Its usage is limited to only blue chip companies. § Issuances of Commercial Paper bring down the bank credit limits. § A high degree of control is exercised on issue of Commercial Paper. § Stand-by credit may become necessary


What does the word critical mean?

In terms of business and finance the term of critical often refers to an item (s) that require intense attention. For example, at a corporate board meeting the CEO may make a case that it's critical to the business that a bid be made to the Government to produce x number of military tanks. Not to do so as soon as possible could mean a loss of income that is vital for the company to remain active in the business of producing weapons for the Dept. of Defense. This is an example of the use of the term critical. It basically means this issue requires the utmost attention. A goal that is vital.


What are the modern functions of commercial bank?

What are Modern Functions of Commercial Banks? The following are the modern functions of a commercial bank: 1. Telebanking. 2. Issue of Debit and Credit Cards. 3. Net banking. 4. Sellling of Insurance products (Bancassurance) 5. Providing ATM facility. 6. SMS Alerts. 7. Rail/Air Ticket Reservation. 8. Electronic transfer of Funds. (NEFT,RTGS).

Related questions

Characteristics of modern business letter?

The are several characteristics of modern business letter. These includes being formal, addressing a specific issue and duly signed by the relevant authority among others.


Which of the cognitive skills in critical thinking has to do with your ability to comprehend the issue?

Interpretation has to do with the ability to comprehend the issue at hand.


Which of the cognitive in critical thinking has to do with your ability to comprehend the issue at hand?

Interpretation has to do with the ability to comprehend the issue at hand.


What is the most critical issue currently facing management?

One of the most critical issues facing management is how to bring all workers or members of the team to achieve a common goal. Having sound policies and realistic goals is another critical issue.


Is long distance Masters degree tenable for a PhD taught degree?

Within the United States, the critical issue is not whether the degree was taken by distance education, or not. The critical issue is the schools accreditation.


Which cognitive skills in critical thinking has to do with ability to comprehend the issue at hand?

Analyzing is the first cognitive skill in critical thinking that involves the ability to comprehend the issue. Analyzing involves breaking the issue down into parts in order to understand its nature and its function.


Which cognitive skill in critical thinking has to do with the ability to comprehend the issue at hand?

The cognitive skill in critical thinking that pertains to the ability to comprehend the issue at hand is analysis. This involves breaking down complex information into simpler parts to understand the underlying meaning and implications. By analyzing the issue, one can identify key components, relationships, and patterns to make informed decisions or judgments.


Which of the cognitive skills in critical thinking has to do with your ability to comprehend issue at hand?

Interpretation has to do with the ability to comprehend the issue at hand.


Which cognitive skill in critical thinking has to do with your ability to comprehend the issue at hand?

Interpretation has to do with the ability to comprehend the issue at hand.


Which of the cognitive skills in critical thinking has to do with your ability to comprehend the issue at hand?

The cognitive skill that relates to the ability to comprehend the issue at hand is interpretation. This skill involves understanding and explaining the information presented, making sense of it, and being able to see the underlying meanings or implications.


Which cognitive skills in critical thinking has to do with your ability to comprehend the issue at hand?

Interpretation has to do with the ability to comprehend the issue at hand.


What is a critical issue in education?

Having a good understanding of the human condition. We are all so different from one another that having even one situation wherein even two people might fully agree is probably impossible. We might agree on language but that is certainly not precise as each of us interpret even body language differently. The next hurdle is forgiveness. If we can never fully agree on anything, the critical issue is not to judge. Of course, humans are normally judgmental as it is part of our heritage. So, we must learn to forgive because "There but for the grace of God, go I" Only after that might an education in critical thinking be possible.