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Question
Which method is preferable, between the loan commitment and the standby letter of credit?
A. The loan commitment is preferable because the savings are greater.
B. The standby letter of credit is preferable because the savings are greater.
C. The loan commitment is preferable it has a lower risk of default.
D. The standby letter of credit is preferable because it has a lower risk of default.
E. The loan commitment is preferable because the back-end fee is payable at the end of the year.
Answer
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