Which of the Following Is NOT Characteristic of a Back-To-Back

question 17

Multiple Choice

Which of the following is NOT characteristic of a back-to-back loan?

• A)it is a method to reduce exchange rate risk
• B)it is know as a fronting loan
• C)it is a loan channeled through a bank
• D)it is collateralized by the parent's deposit

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Definitions:

Annual scholarships

Financial awards given to students once a year to support their education, often based on merit, need, or specific criteria set by the scholarship provider.

Semi-annual dividend

A payment made to shareholders from a company's earnings, distributed twice a year.

Perpetual preferred share

A type of preferred stock that has no fixed maturity date, often providing dividends indefinitely.

Compounded semi-annually

The method of computing interest by taking into account both the original amount of money deposited or lent and the interest that has been earned on that amount from past periods, with the calculation occurring semi-annually.