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Single Answer MCQ
Q-00045415

In banking terms, what defines a 'loan'?

1

A savings account with interest

2

A sum of money borrowed that is paid back with interest

3

Money deposited in the bank

4

A bank's profit from investments

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Sandeep Chaturvedi

Sandeep Chaturvedi

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Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

B. A sum of money borrowed that is paid back with interest

Solution:

A loan is defined as a sum of money that an individual or entity borrows from a bank and agrees to repay with interest over a specified period.

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