The Working Capital Guarantee Program of the Private Export Funding Corporation (PEFCO) encourages commercial banks to extend short-term export financing to eligible exporters by providing a comprehensive guarantee that covers 100 percent of the loan's principal and interest.

Question

Quizplus · Accepted Answer

The Working Capital Guarantee Program is actually administered by the Export-Import Bank of the United States (EXIM), not the Private Export Funding Corporation (PEFCO). This program guarantees loans for U.S. exporters, but it is EXIM that provides this guarantee, not PEFCO.