Which of the following is/are examples of collateral. (2024)

A

Land titles

D

All of these

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Solution

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Correct option is D. All of these

Collateral is an asset that the borrower owns (such as land, building, vehicle, livestocks, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid. If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment. Property such as land titles, deposits with banks, livestock are some common examples of collateral used for borrowing.

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Which of the following is/are examples of collateral. (2024)
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