Question
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 previous loan that was repaid in full
a previous loan that was repaid in full
a credit card balance of $12,000
a credit card balance of $12,000
a high salary
Responses
an antique vase valued at $125,000
an antique vase valued at $125,000
a previous loan that was repaid in full
a previous loan that was repaid in full
a credit card balance of $12,000
a credit card balance of $12,000
a high salary
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 is an asset that a borrower offers to a lender to secure a loan. In this case, the antique vase can be used as collateral because it has value and could be seized by the lender if the borrower fails to repay the loan.
The other options (a previous loan that was repaid, a credit card balance, and a high salary) do not qualify as collateral.
**an antique vase valued at $125,000.**
Collateral is an asset that a borrower offers to a lender to secure a loan. In this case, the antique vase can be used as collateral because it has value and could be seized by the lender if the borrower fails to repay the loan.
The other options (a previous loan that was repaid, a credit card balance, and a high salary) do not qualify as collateral.