The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called _________.

The correct answer is: Hypothecation.

Hypothecation is a legal term that refers to the act of pledging property as security for a loan. The property that is pledged is called the collateral, and the borrower is called the mortgagor. The lender is called the mortgagee.

When a borrower hypothecates property, they are essentially giving the lender the right to take possession of the property if they default on the loan. This means that the lender can sell the property to recoup their losses.

Hypothecation is a common practice in the lending industry. It allows lenders to protect themselves from borrowers who may not be able to repay their loans.

Here is a brief explanation of each option:

• Security is a general term that refers to anything that is used to guarantee the repayment of a loan. This can include property, money, or other assets.
• Mortgage is a specific type of loan that is secured by real estate. When a borrower takes out a mortgage, they are essentially pledging their home as collateral.
• Usury is the practice of charging excessive interest rates on loans. Usury is illegal in many countries.
• Hypothecation is the act of pledging property as security for a loan.