📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      In the context of 'Charges on Securities', consider

      these statements: 1. In a Pledge, the bank has the right to sell the goods without a court order after giving due notice. 2. In Hypothecation, the bank is the constructive possessor of the goods. 3. Mortgage is a charge created specifically on movable property. Which of the statements above is/are correct? 
      A 1 and 2 only Correct Answer Incorrect Answer
      B 2 and 3 only Correct Answer Incorrect Answer
      C 1 and 3 only Correct Answer Incorrect Answer
      D 1, 2, and 3 Correct Answer Incorrect Answer
      E 1 only Correct Answer Incorrect Answer

      Solution

      Statement 3 is incorrect. A Mortgage is a charge created on immovable property (like land or buildings). Charges on movable property include Pledge, Hypothecation, and Lien.

      Practice Next
      More General Topics in Finance Questions

      Relevant for Exams:

      ask-question