Making a Lending Decision to a Party Residing in a Foreign

Multiple Choice

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.