Which of the Following Is NOT a Typical Characteristic of a Fronting

Multiple Choice

Which of the following is NOT a typical characteristic of a fronting loan made to an international subsidiary?

A) The parent makes a deposit equal to the size of the desired loan into a large commercial bank.
B) The bank lends to the subsidiary firm an amount equal to the parent deposit at a slightly higher interest rate.
C) The lending bank is located in the subsidiary's country.
D) All of the above are typical characteristics of a fronting loan.