Which of the Following Statements Is True in Relation to Secondary

question 61

Multiple Choice

Which of the following statements is true in relation to secondary markets for LDC debt?

• A) LDC loans change hands when one creditor assigns the rights to all future payments and principal payments to a buyer, hence removing it from the balance sheet.
• B) Liquidity in these markets is low, as the country whose debt is traded needs to consent to the transaction.
• C) Prices for LCD debt are negotiated directly between the purchaser and the seller.
• D) LDC loans change hands when one creditor assigns the rights to all future payments and principal payments to a buyer and prices for LCD debt are negotiated directly between the purchaser and the seller.

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Definitions:

Black Box

A system or device where the inputs and outputs are known, but the internal workings are not visible or easily understood.

FAB Sequence

A sales technique focusing on Features, Advantages, and Benefits of a product, aimed at highlighting its uniqueness and importance to the customer.

Sales Presentation

A sales presentation is a structured pitch or demonstration aimed at persuading potential clients or buyers of the value and benefits of a product or service.

Trial Closes

Sales technique involving questions or statements that move the customer towards agreement incrementally, used to gauge interest or objections before the final ask.