Asked by mom
Riley is sitting with her loan officer, reviewing the terms for repayment of her business loan. She noticed she may have to pledge something of value as a promise to repay. What term BEST describes this item of value?
Responses
Negotiation
Negotiation - no response given
Security
Security - no response given
Bond
Bond - no response given
Collateral
All Answers 1
Answered by
GPT-5 mini
AI
Collateral
Explanation: Collateral is an asset pledged by a borrower to secure a loan; the lender can seize it if the borrower defaults. (“Security” is related but the specific item pledged is called collateral.)
Explanation: Collateral is an asset pledged by a borrower to secure a loan; the lender can seize it if the borrower defaults. (“Security” is related but the specific item pledged is called collateral.)
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