Question

Choose the correct spelling from the options given below:

• A. Hypothecation
• B. Hypathacation
• C. Hypothacation
• D. Hypathecation

Hint:

Think “hypo” (under) + “theca” (case/box) to remember “Hypothecation.”

Answer 1

The Correct Option is A

The correct spelling is “Hypothecation” — with hypo-the-ca-tion, following the original Greek and Latin roots.
It comes from the Greek “hypothēkē” (meaning pledge) and Latin “hypotheca,” meaning a mortgage or pledge without transfer of possession.
Option (b) “Hypathacation” is wrong because it replaces ‘o’ with ‘a’ and disrupts the correct root spelling.
Option (c) “Hypothacation” is incorrect because it omits the 'e' after 'th', which is essential in the original formation.
Option (d) “Hypathecation” is incorrect because it has both vowel substitution and syllable errors.
In banking and finance, “Hypothecation” refers to the practice where a borrower pledges collateral to secure a debt without giving up possession of the asset.
Example: “The company raised funds through the hypothecation of its machinery.”