Exposure to developing nation debt

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1. What methods do banks use to reduce their exposure to developing nation debt? Check all that apply.

A. Debt/equity swaps

B. Debt-to-export reductions

C. Outright loan sales

D. Debt-service ratio drawdowns

2. What is a eurodollar ?

A. The ratio of scheduled interest and principal payments to export earnings

B. A bank deposit liability denominated in U.S. dollars and other foreign currencies in banks outside the United States

C. An arrangement that reduces the value of contractual obligations of debtor nations

D. A financial intermediary that brings together lenders and borrowers

Reference no: EM132401169

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