What types of companies can use commercial paper to meet their short-term financing needs?

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What types of companies can use commercial paper to meet their short-term financing needs?

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What types of companies can use commercial paper to meet their short-term financing needs?

Explanation & AnswerSolution by a verified expert

Explanation

Financial institutions such as commercial banks issue the majority of commercial paper.  However, non-financial institutions such as automobile companies like GM also issue commercial paper on smaller levels.  For example, in June 2017, non-financial institutions issued $261 billion of commercial paper while commercial banks issued over $2 trillion.

Verified Answer

The majority of commercial paper is issued by financial institutions.  Non-financial companies also issue significant amounts of commercial paper but not nearly as much as financial institutions.

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