What is a loan?

• A. A gift with no obligation to repay
• B. Money given to another party with expectation of repayment plus interest
• C. A lease of property
• D. A grant from philanthropic foundation

Answer: (B)

A loan is money lent with the expectation that it will be repaid, typically with interest and under agreed terms. This distinguishes it from a gift, which has no obligation to repay, a lease, which is about using property rather than borrowing money, and a grant, which is funds provided for a purpose with no repayment requirement. The option describing money given with the expectation of repayment plus interest best matches the concept of a loan.