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Which of the Following Is a Benefit to the Borrower

Question 4

Multiple Choice

Which of the following is a benefit to the borrower in a loan rescheduling?


A) The FI may receive tax benefits.
B) Rescheduling may close the market for future loans.
C) Rescheduling may create interruptions in the flow of international trade since letters of credit may be more difficult to acquire.
D) Rescheduling may lower the present value of future payments in hard currencies.
E) The FI may receive additional fees, collateral, and option features on the loan.

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