. Explain back-to-back loans. [A back-to-back loan occurs when two business organizations in two different countries...
. Explain back-to-back loans.
[A back-to-back loan occurs when two business organizations in two different countries for a specified period of time enter into an agreement to borrow money from each other in the respective countries]
Homework Answers
Answer-
Back to back loans
• It is a loan agreement between two companies.
• Currency for both the companies remain the same but the date of maturity remains fixed.
• The rate of interest of the loans is also different for both the companies.
• This method is adopted by companies to avoid currency risk.
Add Answer to:
. Explain
back-to-back loans.
[A
back-to-back loan occurs when two business organizations in
two different countries...
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