Which of the Following Is a Reason Why an International

question 22

Multiple Choice

Which of the following is a reason why an international loan rather than a bond financing makes rescheduling more likely?

• A)There are generally fewer FIs in any international lending syndicate compared to geographically dispersed bondholders.
• B)Many international loan syndicates comprise the same groups of FIs, which adds to FI cohesiveness in loan renegotiations.
• C)Many international loan contracts contain cross-default provisions that state if a country were to default on just one of its loans, all the other loans outstanding would also become in default.
• D)None of the above are like reasons.
• E)All are likely reasons.

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Definitions:

Control Group

In experiments, a group of subjects that does not receive the treatment being tested, used as a benchmark to measure the effects of the treatment on the experimental group.

Dependent Variable

In research, it is the variable that is being tested and measured, usually to see if it is affected by the independent variable.

Randomization

The process of making choices or selecting participants for a study randomly to eliminate bias and ensure impartiality.

Experimental Group

In research, a group of subjects who are exposed to the variable under study to assess its effect, as opposed to a control group.