An asset that a borrower owns and pledges to a lender as a guarantee until the loan is repaid is known as:

Consider the following statements: 1. Formal credit sources are regulated by government authorities. 2. Expansion of institutional credit reduces dependence on money lenders. 3. Informal lenders generally charge lower rates of interest due to competition among themselves. How many of the statements given above are correct?

When a cooperative society secures a large loan from a bank using its members' collective savings, what serves as collateral in this case?