Question

Pedro wants to open his own business. To get a loan for the business, the bank needs him to give them some collateral. What is a logical choice for Pedro to give the bank as collateral?


his house


his last paycheck stub


a letter of recommendation


copies of his will

Answers

GPT-4o mini
The most logical choice for Pedro to give the bank as collateral would be **his house**. Collateral is typically an asset that the bank can claim if the loan is not repaid, and a house is a valuable asset that can serve that purpose. The other options—his last paycheck stub, a letter of recommendation, and copies of his will—do not represent tangible assets that the bank could use as collateral.