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CMA Final · Strategic Financial Management · Digital Finance

A Mumbai-based lender, Kalyani Credit, uses a peer-to-peer (P2P) lending platform regulated as an NBFC-P2P. An investor wants to lend Rs 8,00,000 in total. The platform's rules cap the total exposure of a single lender across all P2P platforms at Rs 50,00,000, and exposure to any single borrower across all platforms at Rs 50,000. What is the minimum number of different borrowers across whom the investor must spread the Rs 8,00,000 to comply with the single-borrower cap?

The investor must lend to at least 16 borrowers. With a cap of Rs 50,000 per borrower, dividing the Rs 8,00,000 total by Rs 50,000 gives 16. Fewer borrowers would breach the single-borrower exposure limit under the P2P framework.

  1. A16Correct
  2. B8
  3. C160
  4. D80

Explanation

Minimum borrowers = total lending / per-borrower cap = 8,00,000 / 50,000 = 16. Check: 16 x 50,000 = 8,00,000. Choosing 8 would result from using Rs 1,00,000 as the cap, which is wrong; 160 and 80 come from misplaced decimals.

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