When many banks join together to lend money to developing countries such as Bangladesh and Malaysia, they seek to spread out the risk of default.This is called
A) a not-for-profit organisation.
B) a cooperative.
C) diversification.
D) a quasi-government corporation.
E) a syndicate.

Question

Quizplus · Accepted Answer

When many banks join together to lend money to developing countries and seek to spread out the risk of default, it is known as a syndicate. A syndicate pools resources of financial institutions, reducing individual risks and allowing them to collectively finance larger and riskier projects.

When Many Banks Join Together to Lend Money to Developing