Consider the following statements Statement I Syndicated lending spreads the risk of borrower d...........

Economic Affairs Financial Markets

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?

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UPSC CSP GS Previous Year Paper 2024

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

Both Statement-I and Statement-II are correct, but Statement-II does explain Statement-1

Statement- I correct, but Statement-II is incorrect

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

Statement- I correct, but Statement-II is incorrect

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