Assertion (A): Banks are not ready to lend money to certain borrowers. Reason (R): Some people do not have collateral.

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KollegeApply · Accepted Answer

Both (A) and (R) are true, and (R) is the correct explanation of (A). Explanation: Banks often require collateral as security for a loan. If a borrower does not have sufficient collateral, banks may perceive the loan as riskier and might be hesitant to lend. This is why the assertion that banks are not ready to lend money to certain borrowers is directly related to the reason that some people do not have collateral.

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