Consider the following statements : Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II: The syndicated l

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

(X)

Answer

(A) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I

Answer

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

Answer

(C) Statement-I is correct, but Statement-II is incorrect

Answer

(D) Statement-I is incorrect, but Statement-II is correct