Question

Which of the following best describes a valuable asset used to secure a loan from a lender?

A.
collateral

B.
security

C.
tender offer

D.
tangible good

Answer 1

A. Collateral

Step-by-step explanation:

Collateral is a pledge that is given to a person in exchange for a loan (of something). The pledge could be redeemed after the loan has been returned (along with whatever strings has come attached with borrowing the item).

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