Question:
Which of the following statement(s) is/are untrue?
(A) Credit Guarantee Corporation of India was established in 19
(B) Mortgage refers to legal transfer of ownership of property from creditor to debtor.
(C) Muhammad Yunus was awarded Nobel Peace Prize in 2006 for founding the grameen bank.
(D) Capital strongly backs the third 'R' of credit.
Choose the correct answer from the options given below:
Which of the following statement(s) is/are untrue?
(A) Credit Guarantee Corporation of India was established in 19
(B) Mortgage refers to legal transfer of ownership of property from creditor to debtor.
(C) Muhammad Yunus was awarded Nobel Peace Prize in 2006 for founding the grameen bank.
(D) Capital strongly backs the third 'R' of credit.
Choose the correct answer from the options given below:
(A) Credit Guarantee Corporation of India was established in 19
(B) Mortgage refers to legal transfer of ownership of property from creditor to debtor.
(C) Muhammad Yunus was awarded Nobel Peace Prize in 2006 for founding the grameen bank.
(D) Capital strongly backs the third 'R' of credit.
Choose the correct answer from the options given below:
Show Hint
A mortgage secures a debt using immovable property. In contrast, hypothecation or pledge is used to secure loans using movable assets.
Updated On: Aug 5, 2026
- (A) and (B) only.
- (C) and (D) only.
- (B) only.
- (A), (C) and (D) only.
Show Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Understanding the Concept:
This question focuses on agricultural credit, banking terminology, and microfinance history.
It requires evaluating several statements to identify which ones are incorrect.
Step 3: Detailed Explanation:
Let us analyze each statement individually:
- Statement (A): The Credit Guarantee Corporation of India (CGCI) was established in 1971 to provide credit guarantees to banks lending to small borrowers. This statement is true.
- Statement (B): A mortgage is a legal agreement where a debtor (borrower) transfers an interest in immovable property to a creditor (lender) as security for a loan. Ownership is not transferred, and the transaction goes from debtor to creditor, not from creditor to debtor. Thus, statement (B) is false.
- Statement (C): Muhammad Yunus and the Grameen Bank were jointly awarded the Nobel Peace Prize in 2006 for their work creating economic and social development through microcredit. This statement is true.
- Statement (D): The three Rs of agricultural credit are Returns, Repayment Capacity, and Risk-Bearing Ability.
The third R (Risk-bearing ability) represents a farmer's capacity to withstand financial shock, which is directly supported by their equity or capital (Net Worth). Thus, statement (D) is true.
Step 4: Final Answer:
The only incorrect statement is (B). Therefore, "(B) only" is the correct choice.
This question focuses on agricultural credit, banking terminology, and microfinance history.
It requires evaluating several statements to identify which ones are incorrect.
Step 3: Detailed Explanation:
Let us analyze each statement individually:
- Statement (A): The Credit Guarantee Corporation of India (CGCI) was established in 1971 to provide credit guarantees to banks lending to small borrowers. This statement is true.
- Statement (B): A mortgage is a legal agreement where a debtor (borrower) transfers an interest in immovable property to a creditor (lender) as security for a loan. Ownership is not transferred, and the transaction goes from debtor to creditor, not from creditor to debtor. Thus, statement (B) is false.
- Statement (C): Muhammad Yunus and the Grameen Bank were jointly awarded the Nobel Peace Prize in 2006 for their work creating economic and social development through microcredit. This statement is true.
- Statement (D): The three Rs of agricultural credit are Returns, Repayment Capacity, and Risk-Bearing Ability.
The third R (Risk-bearing ability) represents a farmer's capacity to withstand financial shock, which is directly supported by their equity or capital (Net Worth). Thus, statement (D) is true.
Step 4: Final Answer:
The only incorrect statement is (B). Therefore, "(B) only" is the correct choice.
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