Question 4 of 75Indian Economy

Consider the following statements: Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II: The syndicated loan can be a 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?

ABoth Statement-I and Statement-II are correct and Statement-II explains Statement-I.
BBoth Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I.
CStatement-I is correct, but Statement-II is incorrect.
DStatement-I is incorrect, but Statement-II is correct.

Correct Answer

The correct answer is hidden

Explanation

27 words hidden ... syndicated facilities may take several forms, including term loans and revolving credit lines. The essential purpose of ... 28 words hidden