GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Hypothecation is:
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A transaction of conditional sale
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Transfer of ownership by the borrower to the lender
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Either a or b
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A legal transaction whereby goods may be made available as security for a debt
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Explanation:
Detailed explanation-1: -Hypothecation is a mode of creating charge on goods or related document surrender of possession of goods. According to Prof. Herbert Hart, “Hypothecation is a legal transaction whereby goods may be made available as security for a debt without transferring either the property or the possession to the lender”.
There is 1 question to complete.