Final answer:
The statement that syndicated loans are only denominated in U.S. dollars is not true; syndicated loans can be denominated in various currencies.
Step-by-step explanation:
Syndicated loans are a type of loan provided by a group of banks to a borrower. One of the given options is not true about syndicated loans. The option that is NOT true is: 2) The loans are only denominated in U.S. dollars. Syndicated loans can be denominated in various currencies depending on the borrower's needs and the market conditions. Therefore, option 2 is incorrect.
The question asks which statement is NOT true about syndicated loans. The correct answer is that the statement saying syndicated loans are only denominated in U.S. dollars is not true. Syndicated loans are indeed provided by a group of banks to a single borrower, and a borrower does incur various fees besides the interest rate such as arrangement fees, agency fees, and commitment fees. However, the assertion that the loans are only denominated in U.S. dollars is incorrect, as syndicated loans can be denominated in various currencies, depending on the agreement between the lenders and the borrower.