Which of the Following Is a Benefit to the Borrower

question 4

Multiple Choice

Which of the following is a benefit to the borrower in a loan rescheduling?

• A)The FI may receive tax benefits.
• B)Rescheduling may close the market for future loans.
• C)Rescheduling may create interruptions in the flow of international trade since letters of credit may be more difficult to acquire.
• D)Rescheduling may lower the present value of future payments in hard currencies.
• E)The FI may receive additional fees, collateral, and option features on the loan.

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Definitions:

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