Which of the Following Is NOT an Important Impediment to Widespread

question 19

Multiple Choice

Which of the following is NOT an important impediment to widespread use of parallel loans?

• A) difficulty in finding an appropriate counterparty
• B) the risk that one of the parties will fail to return the borrowed funds when agreed
• C) the process does not avoid exchange rate risk
• D) All of the above are significant impediments.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Supply Decreases

A reduction in the quantity of a good or service that producers are willing and able to sell at a given price.

Late Frost

An unexpectedly cold period occurring late in the spring that can damage or kill crops and plants.