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  • __________ is an asset that the borrower owns and uses as...
Multiple choice

__________ is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

  1. Right to ownership

  2. Collateral

  3. Source

  4. Firm

  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Collateral is an asset of value that the lender can grab and sell if you fail to repay the debt as promised. 

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