A Loan Arrangement in Which a Parent Company Reduces Its

question 7

Multiple Choice

A loan arrangement in which a parent company reduces its political risk by using an intermediary bank rather than a direct transfer of funds to a subsidiary is called a(n)

• A) parallel loan.
• B) Eximbank direct loan.
• C) fronting loan.
• D) Overseas Private Investment Corporation (OPIC).

---

Definitions:

Transitional Words

Words or phrases that help to connect ideas smoothly in writing, making it easier for readers to follow the author's thoughts.

Dangling Modifier

A word or phrase intended to modify a word not clearly stated in the sentence, often leading to confusion or ambiguity.

Misplaced Modifier

A grammatical error where a descriptive word or phrase is placed too far from the noun it is meant to modify, leading to unclear or absurd sentences.

Independent Clauses

Sentences or parts of a sentence that can stand alone as a complete thought because they have both a subject and a verb.