Collateral is ________ the lender receives if the borrower does not pay back the loan.
A)a liability
B)an asset
C)a present
D)an offering

Question

Quizplus · Accepted Answer

Collateral refers to an asset that a borrower pledges as security for a loan. If the borrower fails to repay the loan, the lender can seize and sell the collateral to recover their losses. Therefore, collateral is considered an asset for the lender. It is not a liability, present, or offering.

Collateral Is ________ the Lender Receives If the Borrower Does