A bank that has not received payment on a loan can try to get its money back by:A.hiring a collection agency to seize the money from the borrower.B.taking out a larger loan in the borrower's name to cover the initial debt.C.ordering the borrower to work for the bank without earning any money.D.contacting the police and requesting the borrower be jailed.
Question
A bank that has not received payment on a loan can try to get its money back by:A.hiring a collection agency to seize the money from the borrower.B.taking out a larger loan in the borrower's name to cover the initial debt.C.ordering the borrower to work for the bank without earning any money.D.contacting the police and requesting the borrower be jailed.
Solution
The correct answer is A. If a bank has not received payment on a loan, it can hire a collection agency to try to recover the money from the borrower. This is a common practice in the financial industry. The collection agency will attempt to contact the borrower and arrange for payment. If the borrower still does not pay, the agency may take further action, such as reporting the debt to credit bureaus or suing the borrower. The other options listed are not legal or ethical ways for a bank to recover a debt.
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