It is __________ in the United States for a bank to require a business owner to put up some of his personal assets as "__________" collateral for a loan to his business.
A) legal; inside
B) legal; outside
C) illegal; inside
D) illegal; outside

Question

Quizplus · Accepted Answer

It is legal in the United States for a bank to require a business owner to put up some of his personal assets as "outside" collateral for a loan to his business. "Outside" collateral refers to assets that are not directly related to the business, such as a personal residence or car. However, it may be illegal for a bank to require "inside" collateral, which refers to assets directly related to the business, such as inventory or equipment.

It Is __________ in the United States for a Bank