CreditWiseConfident Decisions

IIBF Exam Practice Mode
Adaptive Question Stepper

Practice IIBF questions with a 30-second timer, instant explanation breakdowns, and 1-click links to live calculation tools.

Streak🔥 0
Accuracy0%
Session0/1
JAIIB Paper 1: Principles & Practices of BankingModule A: General Banking OperationsUnit 04: Types of Charges Over Securities
0s

Q1. Which type of security charge is created when moveable goods remain in physical possession of the borrower, but equitable constructive possession and right to seize are granted to the bank?

A
Hypothecation (Section 2 of SARFAESI Act)
B
Pledge (Section 172 of Indian Contract Act)
C
Lien (Section 170 of Indian Contract Act)
D
Mortgage (Section 58 of Transfer of Property Act)

Incorrect Answer

Formula: Hypothecation = Charge on Moveables with Borrower Possession

Hypothecation creates a charge on moveable property without delivery of physical possession (borrower retains possession). Pledge requires physical delivery of goods to the banker.

Learn & Practice in CreditWise: Securities & Charges Chapter Hypothecation Deed Legal Template
Study Theory Launch Tool
Question 1 of 10

Welcome Back

Sign in to save reports and access premium credit tools.

or continue with
Don't have an account?