UPSC Prelims 2024 · GS Paper I

Question 52: Economy and Social Development

Consider the following statements :

Statement-ISyndicated lending spreads the risk of borrower default across multiple lenders.
Statement-IIThe 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 ?

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

bBoth Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I

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

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

UPSC dropped this question: it was not marked, and every candidate kept its marks either way.

Source: UPSC, Civil Services (Preliminary) Examination 2024, General Studies Paper I, Series A. The paper on upsc.gov.in.