{"id":85097,"date":"2025-06-01T03:03:12","date_gmt":"2025-06-01T03:03:12","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=85097"},"modified":"2025-06-01T03:03:12","modified_gmt":"2025-06-01T03:03:12","slug":"the-asset-or-assets-that-a-borrower-pledges-in-order-to-guarantee-repa","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-asset-or-assets-that-a-borrower-pledges-in-order-to-guarantee-repa\/","title":{"rendered":"The asset or assets that a borrower pledges in order to guarantee repa"},"content":{"rendered":"

The asset or assets that a borrower pledges in order to guarantee repayment of a loan is called as<\/p>\n

[amp_mcq option1=”Cheque” option2=”Collateral” option3=”Guarantee card” option4=”Bond” correct=”option2″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-1 – 2021<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nCollateral is an asset or piece of property that a borrower pledges to a lender as security for a loan. If the borrower defaults on the loan, the lender has the right to seize and sell the collateral to recover the outstanding debt.
\n<\/section>\n
\n– Collateral reduces the risk for the lender, making them more willing to extend credit.
\n– Common examples of collateral include real estate (for mortgages), vehicles (for car loans), or other valuable assets.
\n<\/section>\n
\nA cheque is a payment instrument. A guarantee card is not a standard financial term for pledged assets. A bond is a debt instrument representing money lent by an investor to a borrower (typically a government or corporation), not an asset pledged *by* a borrower *to* guarantee repayment.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

The asset or assets that a borrower pledges in order to guarantee repayment of a loan is called as [amp_mcq option1=”Cheque” option2=”Collateral” option3=”Guarantee card” option4=”Bond” correct=”option2″] This question was previously asked in UPSC CDS-1 – 2021 Download PDFAttempt Online Collateral is an asset or piece of property that a borrower pledges to a lender as … <\/p>\n

Detailed SolutionThe asset or assets that a borrower pledges in order to guarantee repa<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1087],"tags":[1110,1120,1190],"class_list":["post-85097","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1110","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nThe asset or assets that a borrower pledges in order to guarantee repa<\/title>\n<meta name=\"description\" content=\"Collateral is an asset or piece of property that a borrower pledges to a lender as security for a loan. If the borrower defaults on the loan, the lender has the right to seize and sell the collateral to recover the outstanding debt. - Collateral reduces the risk for the lender, making them more willing to extend credit. - Common examples of collateral include real estate (for mortgages), vehicles (for car loans), or other valuable assets.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-asset-or-assets-that-a-borrower-pledges-in-order-to-guarantee-repa\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The asset or assets that a borrower pledges in order to guarantee repa\" \/>\n<meta property=\"og:description\" content=\"Collateral is an asset or piece of property that a borrower pledges to a lender as security for a loan. If the borrower defaults on the loan, the lender has the right to seize and sell the collateral to recover the outstanding debt. - Collateral reduces the risk for the lender, making them more willing to extend credit. - Common examples of collateral include real estate (for mortgages), vehicles (for car loans), or other valuable assets.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/the-asset-or-assets-that-a-borrower-pledges-in-order-to-guarantee-repa\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:03:12+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The asset or assets that a borrower pledges in order to guarantee repa","description":"Collateral is an asset or piece of property that a borrower pledges to a lender as security for a loan. 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