Grace period on principal and interest payments


1) Suppose Lufthansa buys 10 Boeing 747s for $150 million in 1991, financed by a five year loan from the US ExportImport Bank There is a one year grace period on principal and interest payments The net impact of this sale in 1991 is:

A) zero change in the U.S. balance of payments in 1991 .

B) a $150 million reduction in the U.S. trade deficit.

C) a $150 million reduction in the U.S. capital account surplus.

D) all of the above.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Grace period on principal and interest payments
Reference No:- TGS040604

Expected delivery within 24 Hours