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A borrower defaults on a secured loan of Rs. 25,000. The underlying security is worth Rs. 40,000. Which of the following is true? a. Bank can retain Rs. 25,000. b. Balance Rs. 15,000 has to be paid to the borrower. c. Bank cannot sell the underlying security because its value is higher than loan amount. |
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Answer» Correct answer is b. Balance Rs. 15,000 has to be paid to the borrower. |
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