Which of the following may fall under the category of collateral?(1 point)

Responses

a credit card balance of $12,000
a credit card balance of $12,000

a previous loan that was repaid in full
a previous loan that was repaid in full

an antique vase valued at $125,000
an antique vase valued at $125,000

a high salary

1 answer

The item that may fall under the category of collateral is:

an antique vase valued at $125,000

Collateral refers to an asset that a borrower offers to a lender to secure a loan. If the borrower defaults, the lender can claim the collateral to cover the loss. A credit card balance, previous loan repayment, and a high salary do not qualify as collateral.