Question
Which of the following may fall under the category of collateral?(1 point)
Responses
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
a credit card balance of $12,000
a previous loan that was repaid in full
a previous loan that was repaid in full
Responses
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
a credit card balance of $12,000
a previous loan that was repaid in full
a previous loan that was repaid in full
Answers
GPT-4o mini
In the context of collateral, the correct response would be:
**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 on the loan, the lender can claim the collateral to recover the owed amount. A high salary, a credit card balance, and a previous loan that was repaid do not qualify as collateral, as they do not represent tangible assets that can be seized by a lender.
**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 on the loan, the lender can claim the collateral to recover the owed amount. A high salary, a credit card balance, and a previous loan that was repaid do not qualify as collateral, as they do not represent tangible assets that can be seized by a lender.