Question
1. What is the difference between back to back loans and parallel loans? A. Back to back loans involve two counterparties from two different countries
1. What is the difference between "back to back loans" and "parallel loans"?
A. Back to back loans involve two counterparties from two different countries (having the same currency) that agree to swap the principal and interest between them, while parallel loans involve a swap between a domestic firm and its foreign subsidiary.
B. Back to back loans involve guaranteed loans while parallel loans involve more risky loans to exchange.
C. Back to back loans involve two counterparties from two different countries (having two different currencies) that agree to swap the principal and interest between them, while parallel loans involve a swap between a domestic firm and its foreign subsidiary.
D. Back to back loans involve a swap between a domestic firm and its foreign subsidiary while parallel loans involve two counterparties from two different countries (having the same currency) that agree to swap the principal and interest between them.
E. Back to back loans involve a swap between a domestic firm and its foreign subsidiary while parallel loans involve two counterparties from two different countries (having two different currencies) that agree to swap the principal and interest between them.
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
