Question

for growing crops
13. Identify the incorrect option from the given statement:
a. Collateral is an asset that the lender owns and uses this as a guarantee to a lender
until the loan is repaid.
b. Property such as land titles, deposits with banks, livestock are collateral used for
borrowing.
c Interest rate, collateral and documentation requirement, and the mode of repayment
together comprise what is called the terms of credit.
d. If the borrower fails to repay the loan, the lender has the right to sell the asset or
collateral to obtain payment.​

Answer 1

Answer:

option (a) is incorrect. since Collateral is an asset that the "Borrower" owns and uses this as a guarantee