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:

Financial Resources

Refers to the funds that are available to a business, organization, or individual for spending in order to achieve their goals.

Outsourcing Alliance

A partnership where a company contracts out certain services or processes to another company, aiming to leverage specialized skills or cost advantages.

Preferred Supplier

A business that has been given a status that prioritizes its goods or services over others due to its quality, reliability, or cost-effectiveness.

Strategic Alliance

An alliance between two or more firms aiming to achieve common goals, with each maintaining their separate entity status.