Which of the Following Is NOT a Reason Why International

question 3

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 subsidies 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.

---

Definitions:

Researchers

Individuals who conduct systematic investigations to establish facts or principles or to collect information on a subject.

Designing

The process of creating a plan or proposal to develop new objects, systems, or processes, tailored to meet specific needs or objectives.

Questionnaire

A research instrument consisting of a series of questions for the purpose of gathering information from respondents.

Important Points

Key or significant facts, issues, or figures that are crucial in understanding or analyzing a situation.