Consider the following statements:
Statement-I: Syndicated lending spreads the risk of borrower default across multiple ...

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 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?

Accepted Answer

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Answer

Statement-I is correct, but Statement-II is incorrect

Answer

Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I

Answer

Statement-I is incorrect, but Statement-II is correct

Answer

Both Statement-I and Statement-II are correct and Statement-II explains Statement-I