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AAFM Exam GLO_CWM_LVL_1 Topic 3 Question 62 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam
Question #: 62
Topic #: 3
[All GLO_CWM_LVL_1 Questions]

"A borrower defaults on a secured loan of Rs. 50,000. The underlying security is worth Rs. 60,000. Which of the following is true? "

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Suggested Answer: B

by Nu at May 29, 2023, 06:17 AM

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Desiree
1 months ago
This question is making my head spin. I need to take a break and do some yoga to clear my mind before tackling the next one.
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Loise
17 days ago
C) Bank can retain the entire Rs. 60,000
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Socorro
21 days ago
A) Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower.
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Lamonica
1 months ago
Hold up, if the security is worth more than the loan, can the borrower just take the bank out for a fancy dinner with the extra cash? Asking for a friend.
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Leslee
13 days ago
C) Bank can retain the entire Rs. 60,000
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Amira
18 days ago
No, the bank can keep the extra amount from the security.
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Rashad
21 days ago
A) Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower.
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Meaghan
2 months ago
I don't know, Option D sounds like the most equitable solution. The excess should be shared between the bank and the borrower.
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Lynda
9 days ago
I agree, Option D seems fair. Sharing the excess between the bank and the borrower makes sense.
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Adela
10 days ago
C) Bank can retain the entire Rs. 60,000
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Dustin
22 days ago
A) Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower.
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Marylyn
2 months ago
But the loan amount is only Rs. 50,000, so the bank should be able to retain the entire Rs. 60,000.
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Annamae
2 months ago
I disagree, I believe the correct answer is C.
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Marylyn
2 months ago
I think the answer is A.
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Rickie
2 months ago
Wait, so the bank can just keep the entire security even though it's worth more than the loan? That seems a bit unfair to the borrower.
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Lanie
3 days ago
The excess of Rs. 10,000 has to be shared equally between the bank and the borrower.
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Harley
7 days ago
Wait, that doesn't seem fair to the borrower at all.
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Rikki
9 days ago
Bank can retain the entire Rs. 60,000
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Val
13 days ago
A) Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower.
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Wilford
18 days ago
But shouldn't the borrower get back the excess amount if the security is worth more?
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Elfriede
19 days ago
It's to ensure the bank is fully compensated for the defaulted loan.
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Billy
21 days ago
C) Bank can retain the entire Rs. 60,000
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Lettie
1 months ago
Wait, the bank can only keep the amount of the loan? That doesn't seem fair to them.
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Vernell
1 months ago
A) Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower.
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Levi
2 months ago
A) Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower.
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Dolores
2 months ago
But the security is worth more than the loan amount, so the bank should be able to retain the entire Rs. 60,000.
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Cortney
2 months ago
Option C is the correct answer. The bank can retain the entire Rs. 60,000 since the borrower has defaulted on the loan.
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Alethea
3 months ago
I disagree, I believe the correct answer is C.
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Dolores
3 months ago
I think the answer is A.
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