_____ is an asset pledged by a borrower to a bank when he or she takes a loan.

Name: _____ is an asset pledged by a borrower to a bank when he or she takes a loan.
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Collateral is an asset pledged by a borrower to a bank when he or she takes a loan. It serves as security for the loan, and the lender can seize and sell the collateral to recover the amount owed if the borrower defaults on the loan. A bond, owner's equity, mutual fund, and hedge fund are not typically used as collateral for loans.

_____ Is an Asset Pledged by a Borrower to a Bank