Now listen again, and complete the sentences.

Date: 2015-10-07; view: 519.

Write T (true) or F (false).

Listen to the text about commercial paper and answer the questions.

LISTENING

On what basis is a commercial paper issued?

What caused bank holding companies to issue commercial paper to finance new loans?

Why has commercial paper become an important alternative to bank loans?

a.Commercial paper always has an original maturity of more than 270 days.

b.Commercial paper has been used in various forms since the 1940s.

c.the Federal Reserve imposed reserve requirements on bank-issued commercial paper in 1970.

d.Commercial paper has become an important alternative to bank loans primarily because of its higher cost.

e.Most issuers of commercial paper back up their paper with a line of credit at a bank.

f.Commercial banks were the original purchasers of commercial paper.

_______banks were the original _______of commercial paper. Today the market has greatly expanded to include large_________, nonfinancial businesses, bank trust departments, and__________. These firms are attracted by the relatively low_______, short maturity, and _______these securities offer.

a)Commercial paper always has an original maturity of less than 270 days.

b)Commercial paper has been used in various forms since the 1920s.

c)the Federal Reserve imposed reserve requirements on bank-issued commercial paper in 1970.

d)Commercial paper has become an important alternative to bank loans primarily because of its lower cost.

e)Most issuers of commercial paper back up their paper with a line of credit at a bank.

f)Commercial banks were the original purchasers of commercial paper.