Commerce JAMB

A source of business financing which involves pledging of a specific assets is?

A. bond
B. mortgage
C. debentures
D. loan

Correct Answer:

Option B – mortgage

Explanation

A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full.

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