Question

quiz
question 1 of 8
which of the following best describes a loan?
select a response.
○ a type of insurance coverage for unexpected losses
○ a borrower promises to repay money from a lender
○ a government grant for education
○ a tax deduction for mortgage interest payments

Explanation:

A loan involves an agreement where one party (borrower) receives funds from another (lender) and commits to repaying that amount, often with interest. The other options describe insurance, grants, and tax benefits, which are unrelated to the core definition of a loan.

Answer:

A borrower promises to repay money from a lender