Which of the Following Is NOT a Typical Characteristic of a Fronting

question 50

Multiple Choice

Which of the following is NOT a typical characteristic of a fronting loan made to an international subsidiary?

• A) The parent makes a deposit equal to the size of the desired loan into a large commercial bank.
• B) The bank lends to the subsidiary firm an amount equal to the parent deposit at a slightly higher interest rate.
• C) The lending bank is located in the subsidiary's country.
• D) All of the above are typical characteristics of a fronting loan.

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