Making a Lending Decision to a Party Residing in a Foreign

question 43

Multiple Choice

Making a lending decision to a party residing in a foreign country is a two-step decision.What are the two steps involved in such a decision?

• A)Assessing credit quality of the borrower and sovereign risk quality of the borrower's country.
• B)Assessing political economy risk and exogenous risks.
• C)Assessing sovereign risk quality of the borrower's country and other country risks.
• D)Rescheduling of existing loans and deciding on the terms for new loans.
• E)Assessing the foreign exchange risk involved and the security that can be provided by the borrower.

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Definitions:

Resolution

The degree of detail or clarity of an image, screen, or sensor reading, often measured in pixels for digital images or dots per inch in print.

Main Circuit Board

The main circuit board, often called a motherboard, is the primary printed circuit board (PCB) in computers and other electronic devices, hosting the central processing unit and providing connectors for other peripherals.

Computer

Any of a number of different types of electronic processing devices with a CPU, input circuit, data retention, and output switching.

Motherboard

The main printed circuit board in a computer that interconnects the central processing unit (CPU), memory, and other components.