A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are known as which of the following?
A) negotiable assets
B) intangible assets
C) pledges
D) collateral

Question

Quizplus · Accepted Answer

Collateral refers to the assets that the borrower pledges to secure the loan. These assets could be physical assets such as property or financial assets such as securities. Secured loans are also known as collateralized loans because they are secured against the pledged assets.

A Secured Loan Requires That the Borrower Pledge Specific Assets