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      Question

      Under consortium lending, the key principle

      is:
      A Only one bank handles all operations Correct Answer Incorrect Answer
      B Lead bank alone gives the loan Correct Answer Incorrect Answer
      C Multiple banks lend to a single borrower jointly Correct Answer Incorrect Answer
      D Loans are given only to public sector units Correct Answer Incorrect Answer
      E RBI handles repayment Correct Answer Incorrect Answer

      Solution

      In consortium lending, several banks jointly finance a large borrower to reduce exposure risk.

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