The statement below is followed by four options. Each option is related to the item in the statement, but only one is always true. Select the option that always holds and makes the statement true.
"A loan always has ______."
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A borrower
The answer must hold for every loan, without exception. An option that is present in most cases but can be missing in even one case is not always true.
Option (1) Interest — friends and relatives often give loans without any interest.
Option (2) A bank — loans also come from moneylenders, traders, friends and relatives, not only from banks.
Option (3) A guarantor — many loans are given without any guarantor, for example a small loan from a friend.
Option (4) A borrower — a loan is money (or a thing) given to someone who must return it; the one who takes it is the borrower, and there is no loan without one, so this is always true.