Final answer:
(A) Clothing is not usually used as collateral for a loan because it does not retain value well and is difficult to resell at a price high enough to cover a loan.
Step-by-step explanation:
The question asks which of the following is not usually used as collateral for a loan:
- A) A boat
- B) Clothing
- C) A car
- D) A house
Collateral is valuable property or equipment that a lender has the right to seize and sell in the event that the borrower defaults on the loan. Items that are typically used as collateral are ones that can be easily valued and sold, such as a house, a boat, or a car. Clothing, however, is not usually used as collateral because it does not retain value well and is difficult to sell for a price that would cover the loan amount.