A situation in which several banks pool resources in the Eurocurrency market to extend credit to a borrower and spread the risk is known as ________.
A)credit collaboration
B)leverage equity financing
C)syndication
D)short-term Eurocurrency financing

Question

Quizplus · Accepted Answer

The situation described in which multiple banks pool resources in the Eurocurrency market to extend credit to a borrower and spread the risk is called syndication. This allows for larger loans to be made than any one bank would be willing or able to make on its own. The borrower is typically responsible for paying back the loan with interest to all of the participating banks.

A Situation in Which Several Banks Pool Resources in the Eurocurrency