Question

    Which of the following is a 'Charge' created on Movable

    Assets where the possession remains with the borrower? 
    A Pledge Correct Answer Incorrect Answer
    B Mortgage Correct Answer Incorrect Answer
    C Hypothecation Correct Answer Incorrect Answer
    D Lien Correct Answer Incorrect Answer
    E Assignment Correct Answer Incorrect Answer

    Solution

    In Hypothecation, the goods remain with the borrower (e.g., car loans or stock-in-trade). In a Pledge, possession is transferred to the lender (e.g., gold loan).

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