Which of the Following Is NOT a Reason Why International

question 49

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 subsidization 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.
• E)Renegotiation of loans is easier because there are fewer banks in loan syndication than there are bondholders in a debt offering.

---

Definitions:

Variables Data

Data that can be measured and quantified, coming in a range of values that can often be fractioned or divided further.

R-chart

A control chart used to monitor the range of variability within a process as a measure of dispersion.

Past Process Performance

Historical data analysis of a process' operational performance, used to identify trends, efficiencies, and areas for improvement.

R-chart

A type of control chart used for monitoring the range of variation within a sample.