Which of the following is NOT an important impediment to widespread use of parallel loans?
A)Difficulty in finding an appropriate counterparty.
B)The risk that one of the parties will fail to return the borrowed funds when agreed.
C)The process does not avoid exchange rate risk.
D)All of the above are significant impediments.

Question

Quizplus · Accepted Answer

Difficulty in finding an appropriate counterparty and the risk of default are major impediments to widespread use of parallel loans. However, the process itself is designed to avoid exchange rate risk by matching the currencies of the loans between the two parties. Therefore, option C is the incorrect choice.

Which of the Following Is NOT an Important Impediment to Widespread