Consider the following statements: Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II: The syndicated loan can be fixed amount/lump sum of funds, but cannot be a credit line. Which one of the following is correct in respect of the above statements?
Question:
Consider the following statements: Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II: The syndicated loan can be fixed amount/lump sum of funds, but cannot be a credit line. Which one of the following is correct in respect of the above statements?
Consider the following statements: Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II: The syndicated loan can be fixed amount/lump sum of funds, but cannot be a credit line. Which one of the following is correct in respect of the above statements?
Options
Answer: (c) Statement-I is correct, but Statement-II is incorrect
Explanation:
Syndicated lending indeed spreads risk, but loans can also be structured as revolving credit lines, making Statement-II incorrect.
Explanation:
Syndicated lending indeed spreads risk, but loans can also be structured as revolving credit lines, making Statement-II incorrect.
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