Asked by Andrea S. Marrero on May 09, 2024
Verified
Widget Corp., a manufacturer and supplier of train coaches worldwide, needs access to more credit than a single bank can handle. Widget Corp. approaches a group of banks that can provide it with the required credit. It is evident that Widget Corp. obtains credit from _____.
A) a syndicate
B) an open account
C) a commercial letter of credit
D) consignment
Syndicate
A group of banks that work together to offer credit in order to reduce risk.
Single Bank
A banking model where a country or region is served by only one central banking institution, which manages monetary policy and banking regulations.
Required Credit
The minimum credit score or financial requirement needed by an individual to qualify for certain loans, services, or credit lines.
- Comprehend the functions and varieties of banking institutions in global finance, encompassing money center and retail banking facilities.
Verified Answer
AK
Ashley KempsMay 15, 2024
Final Answer :
A
Explanation :
When a single borrower requires a loan that is too large for one lender to provide, or when the loan is outside the scope of a lender's risk exposure levels, the borrower might obtain credit from a syndicate, which is a group of lenders.
Learning Objectives
- Comprehend the functions and varieties of banking institutions in global finance, encompassing money center and retail banking facilities.