Asked by
Ilyoung Jeong
on Nov 27, 2024Verified
Because negotiable instruments were originally paper documents, they are sometimes referred to as a commercial paper.
Negotiable Instruments
Negotiable instruments are financial documents that promise payment to the holder and are freely transferable, such as checks, promissory notes, and bills of exchange.
Commercial Paper
An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.
Paper Documents
Physical documents that contain written or printed information, as opposed to digital or electronic formats.
- Clarify the role and mechanism of commercial paper in financial operations.
Verified Answer
DA
Learning Objectives
- Clarify the role and mechanism of commercial paper in financial operations.