What is the primary advantage of a firm that is able to issue commercial paper to finance its short-term assets? Commercial paper does not need to be repaid. interest rates on commercial paper are generally lower than rates on bank loans. Commercial paper is guaranteed by the Federal Government Commercial paper provides greater flexibility in terms of repayment Which of the following is an unsecured short-term bank loan made for a specific purpose? transaction loan mortgage bond revolving credit agreement line of credit Commercial paper is an unsecured form of credit. True False The amount that can be obtained on an inventory loan depends on both the marketability and perishability of the items in the inventory. True False The inventory loan agreement in which the lender can increase his or her security interest by having specific terms of inventory identified in the loan agreement is called inventory identification agreement a chattel mortgage agreement a f