WAEC Commerce 1993 Question 87

Question 87

Banking

Which of the following is a compulsory requirement by the commercial banks when granting loans to customers?

  1. A.Collateral
  2. B.Referee
  3. C.Interest
  4. D.Insurance
  5. E.Endorsement
Show the answer and explanation

Answer: A (Collateral)

Explanation

Banks require collateral (security) before granting a loan.