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      Question

      Which of the following term is the practice where you

      pledge an asset (in this case, a car) to a bank when applying for a loan?
      A Hedging Correct Answer Incorrect Answer
      B Hypothecation Correct Answer Incorrect Answer
      C Saving Correct Answer Incorrect Answer
      D Demat Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      The correct answer is B

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