Which of the Following Is a Benefit to the Lender

question 86

Multiple Choice

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

• A)The FI may become locked into a particular loan portfolio structure.
• 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.

Understand the concept of relevant costs for decision-making and identify relevant versus irrelevant costs.

Explain the importance of incremental costs and benefits in decision-making processes.

Analyze the financial impact of make or buy, and sell or process further decisions.

Calculate the minimum acceptable price for selling or purchasing products based on relevant costs.

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Definitions:

Fee-delivered Services

Services for which a specific charge is applied, typically provided professionally or commercially.

Nonprofit Organization

An entity that operates for the promotion of a social cause, cultural, educational, religious or other public interest objectives rather than for profit.

Marketing

The business process of creating relationships with and satisfying customers through a combination of product, price, place, and promotion strategies.

Donors

Individuals or organizations that voluntarily give resources, such as money or goods, to support a cause or charity.