Question

Leah deposited $50,000 in the bank. three years later, she borrowed $40,000 for a new truck. from this description, which is the most accurate statement?

a), Leah is earning more interest than she is paying.
b), Leah did not have to provide collateral.
c), Leah is being charged to much interest.
d), Leah has the character to make payments on the loan.

Answer 1

B. Leah did not have to provide collateral.

Answer 2

Collateral is a property or other asset that a borrower offers as a way for a lender to secure the loan. In this case Leah deposited $50,000 in the bank so that's an asset that could secure the later loan of $40,000 so the right answer is b) Leah did not have to provide collateral.