Question

7. Commercial banks provide collateral loans against ......
(b) govt. security
(a) bonds
(c) both A & B
(d) None​

Answer 1

Answer:

both a and b.............

Answer 2

Commercial banks provide collateral loans against(c) both A & B that is govt. security and bonds.

• Commercial banks provide collateral loans against both bonds and government securities.
• Government securities are government debt allotments used to finance daily operations, and special infrastructure and military projects.
• They guarantee the full reimbursement of invested principal at the maturity of the security and often pay systematical coupons or interest payments.