Question

Which of the following asset is
hypothecated to the bank ? *​

Answer 1

Answer:

CENTRAL BANK OF INDIA...........

Answer 2

Your question is incomplete. Please check below the full content.

Which of the following asset is hypothecated to the bank

A) House

B) Land

C) Car

D) Property Papers​

Answer:

The correct answer is option (B)Land.

Explanation:

Hypothecation-

• A charge placed on any movable asset by the owner in order to get financing from a bank without ceding ownership and control to the lender is referred to as a "hypothecation." In this arrangement, the owner of the commodities who is borrowing borrows money using inventories as collateral.
• When an asset is used as collateral to obtain a loan, hypothecation takes place. The asset's owner does not relinquish ownership of the asset, including any money it generates.
• The most frequent instance of hypothecation is in mortgage financing, when the house is used as security but the bank has no right to the cash flows or revenue it generates unless the borrower defaults.
• Another prevalent type of hypothecation used in trading and investing in stocks is margin lending in brokerage accounts.

Hence, from the above discussion we can conclude that a Land can be hypothecated to bank.

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