15-50 Making a Lending Decision to a Party Residing in a Foreign

question 80

Multiple Choice

15-50 Making a lending decision to a party residing in a foreign country is a two-step decision.What are the two steps involved in such a decision?

• A)Assessing credit quality of the borrower and sovereign risk quality of the borrower's country.
• B)Assessing political economy risk and exogenous risks.
• C)Assessing sovereign risk quality of the borrower's country and other country risks.
• D)Rescheduling of existing loans and deciding on the terms for new loans.
• E)Assessing the foreign exchange risk involved and the security that can be provided by the borrower.

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Definitions:

Role Play

A technique in training and psychotherapy where individuals assume roles and act them out in a realistic scenario, for the purpose of learning or behavior modification.

Emotional Experiences

The complex psychological states involving thoughts, feelings, and physical changes that arise in response to stimuli or memories.

Gestalt

A psychological approach emphasizing that the whole of anything is greater than its parts, and focusing on patterns and configurations in human perception.

Psychoanalytic Groups

Groups formed for therapeutic purposes, based on principles of psychoanalysis aiming at uncovering and understanding unconscious motives and conflicts.