Edzy
Single Answer MCQ
Q-00045440

What do lenders often require as collateral for loans?

1

A personal guarantee

2

Property owned by the borrower

3

A business license

4

A credit card

Reviewed & Verified by Edzy Expert

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

B. Property owned by the borrower

Solution:

Collateral typically refers to assets such as land or property that the borrower offers as security for the loan.

Watch Video Solution

Keep Practising

Students who asked this also explored

Continue with nearby questions to strengthen the same chapter concept while you still have the context fresh in mind.

Q1

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

Single Answer MCQ
View explanation
Q2

In Salim's case, what role did credit play?

Single Answer MCQ
View explanation
Q3

What was a major risk faced by Swapna as a farmer?

Single Answer MCQ
View explanation
Q4

What should be included in a loan agreement?

Single Answer MCQ
View explanation