Question

Class X Social Sciences
[papers from previous years]

Which one of the following is the appropriate meaning of
collateral?
(A) It is the sum total of money borrowed from banks
(B) The amount borrowed from friends
(C) It is an asset of the borrower used as guarantee to a
lender
(D) The amount invested in a business

Answer 1

(C) It is an asset of the borrower used as guarantee to a lender

Answer 2

(C) It is an asset of the borrower used as guarantee to a lender