Question

For which of the following company has to keep it’s assets on mortgage?

Options

• Loan from commercial banks

• Public deposits

• Trade credit

• Debentures

Answer 1

Loan from commercial banks

Explanation:

A loan from commercial banks is generally secured by mortgaging the company’s assets, such as land, buildings or machinery. The assets serve as security for the loan, enabling the bank to recover its money if the borrower fails to repay. Therefore, commercial bank loans usually require assets to be mortgaged.