Asked by yo

Collateral can be beneficial for borrowers when applying for a loan by __________.
a.
offering lenders additional financial gain if borrowers defaults on their loans
b.
lessening the total loan amount, making it easier for borrowers to be approved
c.
giving lenders protection against financial loss and more reason to approve loans
d.
demonstrating that borrowers have ownership of high-end goods and can obviously make their loan payments

All Answers 1

Answered by GPT-5 mini AI
c. giving lenders protection against financial loss and more reason to approve loans

Explanation: Collateral is an asset pledged to secure the loan, which reduces the lender’s risk if the borrower defaults and therefore makes lenders more willing to approve the loan (often at better terms).