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Communications Service Providers Global One Primarily Is a Worldwide Long-Distance

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Communications service providers Global One primarily is a worldwide long-distance carrier located in France. Focal Communications is located in Chicago and provides Internet services to businesses in the United States. Focal Communications has agreed to buy international capabilities from Global One, and Global One will buy its Internet connections from Focal. Their relationship is an example of:


Definitions:

Low-interest Rate Policy

A monetary policy approach where central banks set lower interest rates to stimulate economic growth by encouraging borrowing and investment.

Fixed-rate

Refers to an interest rate that remains constant over the duration of the loan, bond, mortgage, or other financial instrument.

Sub-prime Mortgages

Loans offered to individuals with poorer credit histories or a higher risk of defaulting, usually at higher interest rates.

Fannie Mae

A government-sponsored enterprise (GSE) focused on expanding the secondary mortgage market by securitizing mortgages, enhancing liquidity in the financial system.

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