Final answer:
The correct answer to the question is D. Collateral, which is property or other assets that a borrower offers as a way for a lender to secure the loan. If the borrower fails to repay the loan, the lender can seize and sell the collateral.
Step-by-step explanation:
The question asks to identify the term for marketable real or personal property that a borrower pledges as security for a loan. The correct answer is D. Collateral.
Collateral is something valuable—often property or equipment—that a lender has the right to seize and sell if the loan is not repaid.
This is a common practice in the financial capital market to mitigate the risk of lending.
For example, before a bank approves a loan, it often requires the borrower to offer collateral in addition to filling out income source forms and undergoing a credit check.