24. If the borrower fails to repay the loan the lender has the right to sell the asset or collateralobtain payment Property such as land titles deposits with bank, livestock are commoexample of collateral used for borrowing.Interest rate, collateral and documentation requirement and the mode of repaymestogether comprise what is called the term of credit. The term of credit vary substantialfrom one credit arrangement to another. They may vary depending on the nature of tlender and the borrower.241 Collateral refers toa) Asset of the lender deposited in the bank.b) Payment through chequec) An asset that the borrower owns and uses this as a guarantee to a lender until the loarepaid.]d) Gold and silver24.2 An agreement in which the lender supplies the borrower with money goods or servicereturn for the promise of future payment can be termed asa) Cheque b) Debit c) Term of loan d) Credit24.3 Credit can push the borrower into a situation from which recovery is very painful. Idethe correct situation responsible for this in the rural areasa) Buying land for agricultureb) Crop failure and increase in the p]rice of seeds fertilizers and pesticides.c) Borrowing to managing daily family expenses.d) Borrowing to complete the delivery order.24.4 Repayment of the loan in the rural area is crucially dependent on the] a) Interest rate b) Collateral c) Income from farming d) Cost of seeds.25. The exact balance of power between the central and the state government varies frorfederation to another. This balance depends mainly on the historical context in whic​