AAFM Exam GLO_CWM_LVL_1 Topic 3 Question 62 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 62
Topic #: 3

"A borrower defaults on a secured loan of Rs. 50,000. The underlying security is worth Rs. 60,000. Which of the following is true? "

A'Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower.'

BBank cannot sell the underlying security because its value is higher than loan.

C'Bank can retain the entire Rs. 60,000'

D'The excess of Rs. 10,000 has to be shared equally between the bank and the borrower.'

Show Suggested Answer

Suggested Answer: B

by Nu at May 29, 2023, 06:17 AM

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10 hours ago

I think the answer is A.

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