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Standby Letters of Credit

Question 83

Multiple Choice

Standby letters of credit


A) are a form of swaps.
B) are a promise by a bank to lend the borrower funds to pay off its maturing commercial paper.
C) are a promise by a large depositor to provide additional funds to a bank should the bank face an unexpectedly large deposit outflow.
D) represent the unused balance on a bank credit card.

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