Which of the following is an asset that the borrower owns such as land building vehicle livestocks d...........

General Studies (MTS) Indian Economy

Which of the following is an asset that the borrower owns (such as land, building, vehicle, livestocks, deposits with banks) and

uses this as a guarantee to a lender until the loan is repaid?

This questions was previously asked in

SSC MTS 11th July 2022 Shift-2

View All SSCMTS Previous Year Papers

Lease

Collateral

Frills

Credit

छोटे Courses बड़े Results

Master Indian Economy

Prepare through Micro-courses

Try Now

Explanation:

- Lease: This is a contractual arrangement where a lessee pays the lessor for the use of an asset over a period of time. It does not typically serve as a guarantee for loans.

- Collateral: This is an asset that a borrower offers to a lender as security for a loan. If the borrower fails to repay, the lender can seize the collateral. Common examples include real estate, vehicles, or bank deposits.

- Frills: This term usually refers to additional features or amenities that enhance something but are typically not essential. It is not related to loans or guarantees.

- Credit: This refers to the trust that allows one party to provide resources to another party, where repayment is expected in the future. It is not an asset offered as a guarantee.