A loan provided by a group of FIs as opposed to a single lender is called:
A)a joint loan
B)project finance
C)a syndicated loan
D)a multiple loan

Question

Quizplus · Accepted Answer

A syndicated loan is a loan provided by a group of FIs, wherein each lender participates in funding a portion of the loan. This type of loan is often used for large-scale projects where a single lender may not have sufficient funds to meet the borrowing needs. Moreover, it allows the risk and cost of the loan to be shared among the lenders, reducing the exposure of any one lender. Therefore, the correct option is C.

A Loan Provided by a Group of FIs as Opposed