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Question
What is pledge?
Solution
A customer transfers the possession of an article with the creditor (banker) and receives a loan. Till the repayment of the loan, the article is under the custody of the borrower. If the debtor fails to refund the loan, the creditor (banker) will auction the article pawned and adjust the outstanding loan from the sale proceeds.
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Match the correct pairs of words from group 'A' and group 'B'.
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Group A
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Group B
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| (a) Retained profits. | (1) Share warrant holder | |
| (b) Small depositors |
(2) Borrowed capital
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| (c) Dividend coupon |
(3) Deposits less than Rs. 25000
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| (d) Returns on shares |
(4) Interest
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| (e) Bear | (5) Expects rise in price of security. | |
| (6) Ploughing back of profit | ||
| (7) Expects fall in price of securities. | ||
| (8) Deposits less than Rs. 20,000. | ||
| (9) Share certificate holder | ||
| (10) Dividend | ||
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