QUESTION 30

1. With the maturity being equal, from the point of view of a bank lender the facility with a longer average life shows:

   	A.	A higher level of risk.
   	B.	A lower level of risk.
   	C.	The same level of risk.

5 points

QUESTION 31

1. What condition must be respected for a project finance initiative to be financed with a given financing structure?

   	A.	Operating cash flow > debt service
   	B.	Operating cash flow < debt service
   	C.	Operating cash flow debt service

5 points

QUESTION 32

1. Which statement referring to the role of multilateral financial institutions is false?

   	A.	In accordance with their policies, they dont take on financial commitments in countries with high political risk.
   	B.	They participate in privatization.
   	C.	They also promote private financing.

5 points

QUESTION 33

1. Not included among bilateral agencies are:

   	A.	Development agencies.
   	B.	Export credit agencies (ECAs).
   	C.	Banks.

5 points

QUESTION 34

1. Mezzanine finance:

   	A.	Obliges sponsors to inject more capital.
   	B.	Allows senior lenders to benefit from a higher level of protection against bankruptcy of the SPV.
   	C.	Lowers the level of guarantees for all lenders.

5 points

QUESTION 35

1. The underlying rationale of sensitivity analysis lies in:

   	A.	The creation of a large number of scenarios to show the level of depth attained by the advisor in designing the initiative.
   	B.	The evaluation of the effects which derive from variations of all variables that can impact project cash flows.
   	C.	The evaluation of the effects which derive from variations in key variables that impact the project.