Collateral is
A) property that is pledged to the lender if a borrower cannot make his or her debt payments.
B) a prevalent feature of debt contracts for households.
C) a prevalent feature of debt contracts for businesses.
D) all of the above.
E) only A and C of the above.

Question

Quizplus · Accepted Answer

Collateral is a prevalent feature of both household and business debt contracts. It is property that is pledged to the lender in case the borrower cannot make their debt payments. Therefore, option D is the correct answer.

Collateral Is