Question:
“Unsecured loans are risky from a bank’s point of view.” Do you agree? Give reason in support of your answer.
“Unsecured loans are risky from a bank’s point of view.” Do you agree? Give reason in support of your answer.
Updated On: June 02, 2025
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Solution and Explanation
Yes, unsecured loans are risky as they do not require collateral. If the borrower defaults, the bank cannot recover the loan by selling assets.
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