SIE Exam Question 590: Answer and Explanation

Question: 590

Which of the following refers to using property to secure payment of a loan, which includes mortgages, pledges, and putting up collateral, but the borrower retains possession?

• A. Hypothecate
• B. Pledge
• C. Remunerate
• D. None of the above are correct.

Correct Answer: A

Explanation:

Hypothecate refers to using property to secure payment of a loan, which includes mortgages, pledges, and putting up collateral, but the borrower retains possession.