Real or personal property that a firm or individual owns and that is pledged as security for a loan is called
A) a security deposit.
B) a mortgage deposit.
C) an amortization.
D) collateral.
E) stocks and bonds.

Question

Quizplus · Accepted Answer

Collateral is property that is pledged as security for a loan. It can be real property (like a house or land) or personal property (like a car or jewelry). If the borrower defaults on the loan, the lender can seize the collateral in order to recover their losses.

Real or Personal Property That a Firm or Individual Owns