Which of the Following Is NOT a Reason Why International

question 49

Multiple Choice

Which of the following is NOT a reason why international loans are more likely to be rescheduled than international bonds?

• A)Governments appear to view the social costs of default on bonds as less critical than on loans.
• B)Many international loan contracts contain cross-default provisions that automatically put into default all loans by that country in the case of one default.
• C)Banks receive no subsidization from major governments to make international loans.
• D)Many international loan syndicates contain the same group of banks which increases the cohesiveness of loan renegotiations.
• E)Renegotiation of loans is easier because there are fewer banks in loan syndication than there are bondholders in a debt offering.

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Definitions:

Self-Understanding

The awareness or knowledge an individual has about themselves, including their strengths, weaknesses, thoughts, beliefs, motivation, and emotions.

Integrity

The quality of being honest and having strong moral principles.

Synthesizing Mind

The ability to integrate ideas from different sources into coherent understandings, often associated with creativity and critical thinking.

Gardner

A reference to Howard Gardner, an American developmental psychologist known for his theory of multiple intelligences.