Which of the Following Describes Debt Rescheduling

question 45

Multiple Choice

Which of the following describes debt rescheduling?

• A)Outright cancellation of all current and future debt obligations.
• B)Changing the contractual terms of a loan,such as its maturity and interest payments.
• C)Direct nationalization of private sector assets.
• D)Automatic default of all international loans upon default of any one loan.

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Definitions:

Maturity Date

The specific date on which the principal amount of a financial instrument is to be paid back in full.

Bond Ratings

Evaluations of the credit quality and risk of default of a bond, issued by rating agencies, influencing interest rates and investor demand.

Financial Obligation

A legal responsibility to settle a debt or pay for a service or product that has been received.

Registered Securities

Securities with which the issuer or a transfer agent keeps a list of the names of owners. Dividends or interest payments are made to owners of record as of specified dates.