Which of the Following Statements Is True in Relation to Secondary

question 29

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 LDC 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 LDC debt are negotiated directly between the purchaser and the seller.

---

Definitions:

Demand Characteristics

Aspects of an observational setting that cause people to behave as they think someone else wants or expects.

Qualitatively Different

Describing a distinction that involves a difference in quality rather than quantity between two or more things.

Children's Thinking

The process by which children make sense of the world around them through learning, understanding, and reasoning; it evolves as they grow, influenced by their experiences and development stages.

Cohort

A group of individuals sharing a significant common characteristic, often utilized in studies to examine specific outcomes over a time period.