Q.When several banks jointly finance a single very large loan and share the amount and the risk among themselves, it is called:
(A) Merchant banking
(B) The consortium approach
(C) Internet banking
(D) Moral suasion

The key idea is that many banks pool together for one big borrower, sharing both the money and the risk.

Section f explains the consortium approach: when a single borrower needs a very large loan that is too big or too risky for one bank to grant alone, several banks come together to form a consortium and jointly finance the project, sharing both the loan amount and the risk among themselves, usually under a lead bank that co-ordinates the arrangement. …

Keep the innovative-banking terms distinct: consortium = many banks, one big loan, shared risk; merchant banking = helping businesses raise capital; internet/telep …