An Asset Used by a Borrower to Secure a Loan

question 115

Multiple Choice

An asset used by a borrower to secure a loan is called:

• A) an opportunity cost.
• B) interest.
• C) bunching.
• D) collateral.

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Definitions:

Psychological Qualities

Characteristics of the mind that influence behavior, thought processes, and emotional responses.

Physical Qualities

The attributes or characteristics that can be observed or measured in a physical or material sense.

Mitigation

The action of reducing the severity, seriousness, or painfulness of something, often used in the context of disaster response or environmental impact reduction.

Prevention

The act of stopping something bad from happening or arising.