UPSC 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?

The correct answer is option (b): Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.

This question was asked in UPSC CSE Prelims 2024, GS Paper 1, as Question 52. It falls under Indian Economy > Banking & Financial Sector.

This question is rated "moderate". It requires sound conceptual understanding of the topic.

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