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Question : Which of the following is an asset that the borrower owns (such as land, building, vehicle, livestock, deposits with banks) and uses as a guarantee to a lender until the loan is repaid?

Option 1: Frills

Option 2: Lease

Option 3: Collateral

Option 4: Credit


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Collateral


Solution : The correct answer is Collateral .

The asset that a borrower owns and uses as collateral or a guarantee to a lender until the loan is repaid is typically referred to as "collateral" or "security." This can include various types of assets, such as land, buildings, vehicles, livestock, or deposits with banks.

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