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What is collateral?

asked
User KcFnMi
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2 Answers

3 votes

Answer:

something pledged as security for repayment of a loan, to be forfeited in the event of a default.

answered
User Teuta Koraqi
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8.8k points
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Answer: The correct answer is : The guarantee is a loan insurance in case the person to whom it is lent fails to pay or becomes bankrupt. If this happens, the person who loaned the money has the legal right to confiscate the asset and can decide whether to keep it or sell it. The most used guarantee is the mortgage on the house

answered
User Rahul Nanwani
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7.3k points

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