When a government guarantees it will repay the loan of a company if the company should default on repayment, it is called a(n) ________.

Question

Quizplus · Accepted Answer

When a government guarantees a loan of a company, it is called a loan guarantee. A subsidy is when the government provides money or other forms of support to a company. Infant industry protection is when the government provides protection to a new industry until it becomes established. A loan repayment clause is a clause within a loan agreement that outlines the terms of repayment.

When a Government Guarantees It Will Repay the Loan of a Company