Practice mode Basic of Economics

What is the security called that a borrower gives a creditor to guarantee repayment of a loan?

Correct answer D. Collateral

Explanation

Collateral is an asset pledged by a borrower to a lender, which the lender can seize and sell if the loan is not repaid as agreed.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.