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Something of value that is used to back up a loan is known as what?

Dividends
Collateral
Capacity
Conditions

2 Answers

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B. collateral is the right answer

User Jaime Sangcap
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Answer: Collateral

Explanation:

Collateral is known to be something of value or a property which a borrower gives to a lender in return for money borrowed. Furthermore, this is usually a form of security for the lender in case the borrower does not pay the loan. Thus, if the borrower fails to pay back the loan, the lender takes the property.

User MeesterPatat
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