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

Responses

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

a high salary
a high salary

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

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 is offered as security for a loan, which can be seized by the lender if the borrower defaults on the loan. The other options—high salary, credit card balance, and previous loan repaid—do not serve as collateral.