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Government Authorities Are More Likely to Allow Subsidiary Repayment of a Loan

Question 53

Multiple Choice

Government authorities are more likely to allow subsidiary repayment of a loan to a large international bank than to a parent firm because


A) stopping payment to an international bank would have a negative impact on the credit image of the country.
B) the government is also borrowing money from that bank and wants a larger loan before they choose to default.
C) corrupt government officials have accounts at the bank and they have made an under-the-table agreement not to withhold funds from that bank.
D) none of the above are true.

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