{"id":2417,"date":"2025-05-01T19:53:50","date_gmt":"2025-05-01T14:23:50","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=2417"},"modified":"2025-05-01T19:57:58","modified_gmt":"2025-05-01T14:27:58","slug":"q-consider-the-following-statements-140","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-consider-the-following-statements-140","title":{"rendered":"Q. Consider the following statements:"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Statement-I:<\/strong>&nbsp;Syndicated lending spreads the risk of borrower default across multiple lenders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Statement-II:<\/strong>&nbsp;The syndicated loan can be fixed amount\/lump sum of funds,&nbsp;<strong>but cannot be a credit line.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Which one of the following is correct in respect of the above statements?<\/p>\n\n\n\n<ul class=\"wp-block-list mcq\">\n<li>Both Statement-I and Statement-II are correct and Statement-I Statement-II explains<\/li>\n\n\n\n<li>Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I<\/li>\n\n\n\n<li>Statement-I is correct, but Statement-II is incorrect<\/li>\n\n\n\n<li>Statement-I is incorrect, but Statement-II is correct<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer: (c) Statement-I is correct, but Statement-II is incorrect<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"notes-hd-6812f7007b9c1\">Notes:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The\u00a0purpose of syndication\u00a0is to\u00a0<strong>spread the risk of lending a large sum of money across multiple financial institutions.<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Syndicated lending refers to a loan that is provided by a group of lenders<\/strong>\u00a0(called a syndicate) and is organized by one or more lead banks.<\/li>\n\n\n\n<li>This way,\u00a0<strong>no single lender is exposed to the full risk\u00a0<\/strong>if the borrower defaults because syndicated lending is specifically designed to distribute risk among multiple lenders.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The\u00a0<strong>syndicated loan can be a fixed amount\/lump sum of funds and a credit line.<\/strong>\n<ul class=\"wp-block-list\">\n<li>A\u00a0syndicated loan\u00a0can indeed\u00a0be a\u00a0<strong>fixed amount or lump sum<\/strong>,\u00a0which is commonly\u00a0referred to as a\u00a0<strong>\u201cterm loan<\/strong>\u201d in a syndicated deal.<\/li>\n\n\n\n<li>In fact,\u00a0<strong>syndicated loans can take various forms, including revolving credit facilities<\/strong>\u00a0(which are essentially credit lines)\u00a0<strong>where the borrower can draw down funds as needed up to a specified limit and repay them over time.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Statement-I:&nbsp;Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II:&nbsp;The syndicated loan can be fixed amount\/lump sum of funds,&nbsp;but cannot be a credit line. Which one of the following is correct in respect of the above statements? Answer: (c) Statement-I is correct, but Statement-II is incorrect Notes:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[49],"class_list":["post-2417","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-49"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":49,"label":"2024"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/2417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=2417"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/2417\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=2417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=2417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=2417"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=2417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}