Question

The Verandas U.S. subsidiary was turned down when it tried to borrow from a U.S. bank. The bank manager suggested that the parent firm deposit money with the U.S. bank's Dutch branch, and then the U.S. bank's home office would lend the money to the U.S. subsidiary. This type of arrangement is known as a(n) ________.
A) mortgage loan
B) title loan
C) back-to-back loan
D) syndicated loan

Answer

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