A Loan in Which a Parent Deposits Money with a Host-Country

question 40

Multiple Choice

A loan in which a parent deposits money with a host-country bank, which then lends the money to a subsidiary located in the host country is known as a(n) ________.

• A) internal funding
• B) external funding
• C) back-to-back loan
• D) American Depository Receipt

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Definitions:

Interest

The expense associated with taking out a loan, usually conveyed as a yearly percentage of the total loan value.

Invested

Dispensing capital with the plan of creating income or profit.

Days

Time period measured in units of 24 hours.

Investment

asset or item acquired with the goal of generating income or appreciation.