Which of the Following Observations Concerning International Loan Cross-Default Provisions

question 31

Multiple Choice

Which of the following observations concerning international loan cross-default provisions is NOT true?

• A)They ensure that if a country defaults on just one of its loans,all its other outstanding loans would automatically be put into default as well.
• B)They prevent a country from selecting a group of weak lenders for special default treatment.
• C)They make the outcome of any individual loan default decision potentially very costly for the borrower.
• D)They protect strong lenders in any loan default by guaranteeing the repayment of such defaulted loans.

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