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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Definitions:

Disparity

A great difference or inequality between two or more elements.

MAP-IT Construct

A framework used in public health to Mobilize, Assess, Plan, Implement, and Track health initiatives.

Assess

To evaluate or estimate the nature, ability, or quality of something through examination or analysis.

Resources

The total means available for economic and operational support, including financial assets, personnel, and informational materials.