How do fronting loans work?
A) The parent company deposits the loan amount in an international bank, and then the bank fronts for the parent.
B) The parent company deposits the loan amount with the subsidiary, which then uses it to build a relationship with a local bank.
C) The parent company signs a collateral note with an international bank, thus fronting for the subsidiary.
D) Fronting loans are loans made to startups by the parent company, with no collateral.
Correct Answer:
Verified
Q104: In a _,the company sells forward its
Q105: _ exposure occurs when there is a
Q106: When a subsidiary's financial statements are consolidated,_
Q107: _ tax is an indirect tax levied
Q108: Exposure at the operations level caused by
Q110: A fronting loan can be used by
Q111: Exposure netting is a process parallel to
Q112: _ is a process in which subsidiaries
Q113: Collecting receivables early when currencies are expected
Q114: _ contacts are agreements to exchange currencies
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