A Lease in Which the Lessor Borrows from a Bank

question 63

Multiple Choice

A lease in which the lessor borrows from a bank or other lender to obtain the initial capital for the purchase of an asset and using the lease payments to pay the interest and principal on the loan is called a:

• A)sales-type lease.
• B)direct lease.
• C)sale and leaseback.
• D)leveraged lease.
• E)synthetic lease.

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Definitions:

Neo-Mercantilist

A modern economic policy that embraces government intervention to increase exports, discourage imports, and accumulate foreign currency reserves, inspired by mercantilism.

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Actions taken by a country to protect domestic industry

Trade Surplus

The result when a country engaged in trade exports more than it imports, also called positive trade balance.

International Product Life Cycle

A theory suggesting that a product's sales and popularity will vary in different international markets through various stages of its life cycle.