When many banks join together to lend money to developing countries such as Bangladesh and Malaysia, they seek to spread out the risk of default. This is called
A) a not-for-profit organization.
B) a cooperative.
C) diversification.
D) a quasi-government corporation.
E) a syndicate.

Question

Quizplus · Accepted Answer

When many banks join together to lend money to developing countries and spread out the risk of default, it is called a syndicate. The other options - not-for-profit organization, cooperative, diversification, and quasi-government corporation - do not accurately describe this scenario.

When Many Banks Join Together to Lend Money to Developing