tax-exempt commercial paper


A government-approved short-term debt instrument for a company or entity, which allows for a tax exemption on the earnings, either at a local, state, or federal level (or a combination of these). It is an indirect way of the government injecting funds into the given entity. For example, a hospital requiring funds for its day to day operations may issue these government-approved commercial papers for a short period of time.
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tax-exempt bond tax-exempt money market fund