Assertion (A) : Collateral is an asset that the borrower
owns and uses this as a guarantee to a lender until the
loan is repaid.
Reason (R) : Till the loan is repaid the asset belongs
to the lender.
Options :
(a) Both A and R are true and R is the correct explanation of A
(b) Both are true but R is not the correct explanation of A
(c) A is correct but R is wrong
(d) A is wrong but R is correct
Dear Student
Correct option is (B)
Both are true but R is not the correct explanation of A
Collateral is an asset taken by the banks / money lenders for lending money to its customers. It is a type of a security taken by the banks from its customers. It can be in the form of fixed deposit, property documents, etc.Regards
Correct option is (B)
Both are true but R is not the correct explanation of A
Collateral is an asset taken by the banks / money lenders for lending money to its customers. It is a type of a security taken by the banks from its customers. It can be in the form of fixed deposit, property documents, etc.Regards