A loan that requires the borrower to provide collateral represents a(n):
A)debenture loan.
B)secured loan.
C)unsecured loan.
D)bond trust.

Question

Quizplus · Accepted Answer

A secured loan is a loan that is backed by collateral, which can be seized by the lender if the borrower fails to repay the loan. Collateral can include real estate, vehicles, or other valuable assets. Debenture loans, unsecured loans, and bond trusts do not require collateral.

A Loan That Requires the Borrower to Provide Collateral Represents