Money and credit.
11. What is collateral? Why do the banks ask for it?
12. Why does a bank not lend it's money to those who don't have collateral?
13. Explain terms of credit.
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11. A collateral is an asset that bank keep with them as a guarantee that you will repay the loan on time. If you are unable to repay the loan then the asset would be sold to get loan value back.
12. The banks don't lend to those who don't have collateral because they then don't have any guarantee for return of money.
13. A credit is an amount that is given by alending entity
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