Advertisements
Advertisements
Question
Which one of the following is the appropriate meaning of collateral?
Options
It is the sum total of money borrowed from banks.
The amount borrowed from friends.
It is an asset of the borrower used as guarantee to a lender.
The amount invested in a business.
It is the amount of money borrowed from banks.
Advertisements
Solution
It is an asset of the borrower used as a guarantee to a lender.
APPEARS IN
RELATED QUESTIONS
How does money act as a medium of exchange?
How do money and muscle power play an important role in elections? Explain.
Which one of the following refers to investment?
(A) The money spent on religious ceremonies
(B) The money spent on social customs
(C) The money spent to buy assets such as land
(D) The money spent on household goods
How do the deposits with banks become their source of income?
Describe the vital and positive role of credit with examples.
Why one cannot refuse a payment made in rupees in India?
How is money used in everyday life? Explain with examples.
How does money solve the problem of double coincidence of wants? Explain with an example of your own.
Analyse the role of credit for development.
Explain the meaning of 'Currency'.
