Answer (C) is correct. Commercial paper is a short-term, unsecured note payable issued in large denominations by major companies with excellent credit ratings. Maturities usually do not exceed 270 days. Commercial paper is a lower cost source of funds than bank loans, and no compensating balances are required. Commercial paper provides a broad and efficient distribution of debt, and costly financing arrangements are avoided. But the market is not open to all companies because only major corporations with high credit ratings can participate.