SarkariPYQ

SSC GD 2023 PYQ — Question 25

SSC GD Constable (English) - 27 Jan 2023 - Shift 4 • General Awareness • Q25

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 __________ is an asset pledged by a borrower, to a lender as security for a loan. 

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Correct answer: C

Explanation

The correct answer is option 3 i.e. Collateral.

  • Collateral refers to an asset that a borrower pledges to a lender as security for a loan. 
  • Common types of collateral can include real estate, vehicles, stocks, bonds, or other valuable assets.
  • If the borrower defaults on the loan, the lender may have the right to seize and sell the collateral to recover the outstanding debt.