____ is the money you receive from a bank or financial institution in exchange for a commitment to repay the borrowed amount with interest.

Cheque

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Promissory note

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Loan

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Bill

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Loan
Banks lend a considerable portion of deposits as loans. A loan or credit refers to an agreement in which the lender or the bank supplies the borrower with money, goods, or services in return for the promise of future payment. The borrower is expected to pay a marginal sum of money in addition to the money borrowed. This amount is called interest.

Suggest Corrections

Similar questions

Q. Loan is the money you receive from a bank or financial institution in exchange for a commitment to repay the borrowed amount with interest.

Q. A financial institution where customers can borrow or save money is called a ____.

Q. Tulsiram borrowed some money from a bank for

2 \frac{1}{2}

years at the rate of 10% per annum. To repay his debt he had to pay Rs 10,250 as interest. What was the principal that he had borrowed?

Sudhakar borrows $R s . 15000$ from a bank to renovate his house. He borrows the money at $9 %$ p.a. simple interest over $8$ years. What is his monthly repayment.

Q. A farmer borrows Rs.5,400 from the finance company to buy a buffalo. The rate of simple interest is 13% per annum and he borrows the money over a 5-year period. Find the amount that the farmer must repay the company.

Join BYJU'S Learning Program