Property that is pledged to the lender in the event that a borrower cannot make his or her debt payment is called
A) points.
B) interest.
C) collateral.
D) good faith money.

Question

Quizplus · Accepted Answer

Collateral is property that is pledged as security for a loan. In the event that the borrower cannot make their debt payment, the lender can take possession of the collateral to recoup their losses. Points and interest are terms used to describe the costs associated with borrowing money, and good faith money is a deposit made by the borrower to show their commitment to the transaction.

Property That Is Pledged to the Lender in the Event