Question

Which of the following observations concerning loan default provisions is NOT true?

A. They ensure that if a country defaults on just one of its loans, all its other outstanding loans would automatically be put into default as well.

B. They prevent a country from selecting a group of weak lenders for special default treatment.

C. They make the outcome of any individual loan default decision potentially very costly for the borrower.

D. They protect strong lenders in any loan default by guaranteeing the repayment of such defaulted loans.

E. None of the above.

Answer

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