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JAMB Commerce 2001 Question 10

Question 10

Business Finance

The financial instrument for borrowing in which the collateral is usually more than the amount borrowed is

  1. A.trust certificate
  2. B.detachable warrant
  3. C.mortgage bond
  4. D.convertible securities.
Show the answer and explanation

Answer: C (mortgage bond)

Explanation

A mortgage bond is secured on property whose value is usually higher than the loan.