Consider the following statements :
Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders.
Statement-II: The 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?
1
Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
2
Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
3
Statement-I is correct, but Statement-II is incorrect
4
Statement-I is incorrect, but Statement-II