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    Question

    Which of the following statements about Asset

    Reconstruction Companies (ARCs) is correct?
    A ARCs are only allowed to buy non-performing assets (NPAs) from banks and financial institutions. Correct Answer Incorrect Answer
    B ARCs cannot securitize the assets they purchase. Correct Answer Incorrect Answer
    C ARCs can only deal with performing assets. Correct Answer Incorrect Answer
    D ARCs can act as a debtor in a corporate debt restructuring process. Correct Answer Incorrect Answer
    E ARCs are not regulated by RBI. Correct Answer Incorrect Answer

    Solution

    ARCs are primarily set up to acquire NPAs from banks and financial institutions, with the aim of recovering the funds through restructuring, auctioning, or selling the assets.

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