10th Class Social Science Money and Credit Question Bank Short Answer Type - Money and Credit

  • question_answer List some items which are kept as collateral security against loans. What happens if a borrower fails to repay the loan?

    Answer:

    Collateral refers to use of assets by the borrower as a guarantee to a lender until the loan is repaid. Examples of items used; as collateral security-land titles, deposits with banks, livestock, etc. 
    The lender has the right to sell the asset or collateral to obtain payment in case borrower fails to repay the loan.        
     


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