Question

26.4 What is the condition associated with collateral?
(a) If the borrower fails to repay the loan amount, the lender has the right to sell the collateral
security to obtain payment.
(b) The lender holds the authority to sell the asset of the borrower.
(c) The borrower use the collateral until the repayment is done.
(d) An interest rate has to be paid by the borrower to the lender along with repayment of
principal.​

Answer 1

a) the correct answer

hope it helps you ✌