Question

24. If the borrower fails to repay the loan the lender has the right to sell the asset or collateral
obtain payment Property such as land titles deposits with bank, livestock are commo
example of collateral used for borrowing.
Interest rate, collateral and documentation requirement and the mode of repaymes
together comprise what is called the term of credit. The term of credit vary substantial
from one credit arrangement to another. They may vary depending on the nature of t
lender and the borrower.
241 Collateral refers to
a) Asset of the lender deposited in the bank.
b) Payment through cheque
c) An asset that the borrower owns and uses this as a guarantee to a lender until the loa
repaid.]
d) Gold and silver
24.2 An agreement in which the lender supplies the borrower with money goods or service
return for the promise of future payment can be termed as
a) Cheque b) Debit c) Term of loan d) Credit
24.3 Credit can push the borrower into a situation from which recovery is very painful. Ide
the correct situation responsible for this in the rural areas
a) Buying land for agriculture
b) Crop failure and increase in the p]rice of seeds fertilizers and pesticides.
c) Borrowing to managing daily family expenses.
d) Borrowing to complete the delivery order.
24.4 Repayment of the loan in the rural area is crucially dependent on the
] a) Interest rate b) Collateral c) Income from farming d) Cost of seeds.
25. The exact balance of power between the central and the state government varies fror
federation to another. This balance depends mainly on the historical context in whic​

Answer 1

Answer:

24.1 - c

24.2 - d

24.3 - b

24.4 - a