Which of the following is not a true statement about commercial paper?

Q. Which of the following is not a true statement about commercial paper?

A.            Finance paper is also referred to as direct paper.

B.            Dealer paper is sold directly to the lender by a finance company.

C.            Finance paper is sold directly to the lender by the finance company.

D.            Industrial companies, utility firms, or finance companies too small to sell direct paper sell dealer paper instead.

 Answer: Dealer paper is sold directly to the lender by a finance company.