Multiple choice

The charge created in favour of the banker by the customer in case of movable goods where borrower continues his possession is called

  1. pledge

  2. hypothecation

  3. mortgage

  4. lien

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Hypothecation is a charge against movable property where the possession remains with the borrower. In contrast, a pledge involves the transfer of possession to the lender.