Question

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

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

a high salary
a high salary

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

a credit card balance of $12,000

Answers

GPT-4o mini
In the context of collateral, the item that may fall under this category is:

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

Collateral refers to an asset that a borrower offers to a lender to secure a loan, which the lender can seize if the borrower defaults on the loan. In contrast, a previous loan that has been repaid, a high salary, and a credit card balance do not serve as collateral.

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