If P is the price of the standby,NL is the cost of a nonguaranteed loan,and GL is the cost of a loan backed by a standby guarantee,then a borrower is likely to seek an SLC if:
A) P < (NL - GL) .
B) P > (NL - GL) .
C) P = (NL - GL) .
D) P < (NL + GL) .
E) P > (NL + GL) .
Correct Answer:
Verified
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