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    Question

    A charge in or upon any movable property, existing or

    future, created by a borrower in favor of a secured creditor without delivery of possession of the movable property to such creditor is called:
    A Pledge Correct Answer Incorrect Answer
    B Hypothecation Correct Answer Incorrect Answer
    C Mortgage Correct Answer Incorrect Answer
    D Assignment Correct Answer Incorrect Answer
    E Valuation Correct Answer Incorrect Answer

    Solution

    Hypothecation is used as a security of movable assets while taking a loan from the bank. Here the possession of the security remains with the borrower instead of the lender.

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