___________ carry an obligation to pay interest and repay the principal amount.

Grants

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Loans

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Both (a) and (b)

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Neither (a) nor (b)

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Solution

The correct option is B Loans
A loan is money, property, or other material goods given to another party in exchange for future repayment of the loan value or principal amount, along with interest or finance charges. A loan may be for a specific, one-time amount, or it can be available as an open-ended line of credit up to a specified limit.

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Similar questions

Solve the following problems.

Hari took a loan of Rs. 6,000 from a finance company at 18% p.a simple interest. If he repays both principal and interest after 3 years and 8 months, how much money will he pay?

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___ is the riskless source of finance, as there is no obligation on the company to pay dividends or repay the capital of the shareholders, whether they earn a profit or not.

Q. Grace took a loan of

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2 \frac{1}{2}

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