A loan in which a parent company deposits money with a host-country bank,which then lends the money to a subsidiary located in the host country is called a ________.
A) syndicated loan
B) back-to-back loan
C) mortgage loan
D) title loan

Question

Quizplus · Accepted Answer

A back-to-back loan is a type of loan in which a parent company deposits money with a host-country bank, which then lends the money to a subsidiary located in the host country. The parent company provides collateral for the loan, and the subsidiary must repay the loan according to the established terms. This type of loan is often used in international business to provide financing for subsidiaries in other countries.

A Loan in Which a Parent Company Deposits Money with a Host-Country