Question

ASSERTION: Loans are generally secured by assets or guarantees. The borrower may be asked to repay in lump sum or in instalment.

REASONING: Bold investors do not like preference shares.

विकल्प

• A is true, and R is the correct explanation for A.

• A is true, and R is not the correct explanation for A.

• A is true, but R is false.

• A is false, but R is true.

Answer 1

A is true, but R is false.

Explanation:

The Assertion is true because loans are generally secured by assets or guarantees, and borrowers may repay them either in a lump sum or through instalments. The Reason is false because bold investors usually prefer equity shares, not preference shares, as they offer higher return potential despite greater risk.