A chartered bank requires collateral in order to reduce the risk from borrowers defaulting on loans.

Name: A chartered bank requires collateral in order to reduce the risk from borrowers defaulting on loans.
Brand: Quizplus
Rating: 4.7 (41 reviews)

Question

Quizplus · Accepted Answer

This statement is true. Chartered banks typically require collateral from borrowers to lower their risk exposure and ensure that they can recover their losses if the borrower defaults on their loan. Common forms of collateral include property, vehicles, equipment, and other valuable assets.

A Chartered Bank Requires Collateral in Order to Reduce the Risk