pyq/2024/prelims/52

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?

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

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

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

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