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Single Answer MCQ
Q-00015885

What can be a direct consequence of failing to repay a loan?

1

Working with better suppliers

2

Increased social status

3

Loss of collateral

4

Improved credit terms

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Sandeep Chaturvedi

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

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

C. Loss of collateral

Solution:

Failure to repay a loan can result in the lender selling the collateral, thus option C is correct. The other options suggest positive outcomes which do not apply.

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