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.
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
1 answer