Ask Question
29 March, 17:09

A syndicated loan: a. represents a loan by a single bank to a syndicate of corporations. b. represents a loan by a single bank to a syndicate of country governments. c. represents a direct loan by a syndicate of oil-producing exporters to a less developed country. d. represents a loan by a group of banks to a borrower. e. A and B

+2
Answers (1)
  1. 29 March, 19:38
    0
    The correct answer is option d.

    Explanation:

    The syndicated loan is also called syndicate bank facility. Under this facility more than one bank provide loan to a single borrower, which may be a corporation or a government.

    This is generally used when the size of a project is very large no single lender wants to bear the risk alone. Syndicated loans spread risks among the lenders, thus reducing the rate of risk on a single lender.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A syndicated loan: a. represents a loan by a single bank to a syndicate of corporations. b. represents a loan by a single bank to a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers