Apedia Logo Apedia
Join

Choose Language

Select your preferred reading language
🇬🇧
English
✔
🇮🇳
हिन्दी
✔
✕
Full View
Economy
Banking System
EN हिंदी
✕
UPSC Prelims 2024 Paper-I 📅 16 Jun, 2024

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
Result Summary
Logo

APEDIA

UPSC Prelims
2024 • 16 Jun, 2024 • Paper-I
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?
Correct Answer
See Explanation
Economy: Banking System.Context: Syndicated Loans.Details: This question was officially dropped by the UPSC. For reference: Statement I is generally correct, as......
Ref/Book : UPSC Prelims 2024
Ref. Subject Economy
Chapter -
Ref. Topic Banking System
Pg. No -
💡 Analysis & Explanation
Economy ▼
Banking System.
Context ▼
Syndicated Loans.
Details ▼
This question was officially dropped by the UPSC. For reference: Statement I is generally correct, as syndication spreads risk among a group of lenders. However, Statement II is incorrect because syndicated loans can indeed be structured as a revolving credit line as well as a fixed term loan.
← Prev
52 / 100
Next →