In developing countries,it can be expensive and time-consuming for the poor to legalize their property ownership. Without legal title,the property cannot be used as ________ to borrow funds.
A)collateral
B)points
C)interest
D)restrictive covenants

Question

Quizplus · Accepted Answer

Legal title is necessary for a property to be used as collateral to secure loans. Without legal ownership, the lender cannot be assured of the borrower's ability to repay the loan through the sale of the property if necessary. Hence, A is the correct choice. B, C, and D are not relevant to this context.

In Developing Countries,it Can Be Expensive and Time-Consuming for the Poor