Question

what is collateral?​

Answer 1

1. Collateral is an asset or piece of property that a borrower offers to a lender as security for a loan.
2. If the borrower fails to pay the loan, the lender has the right to take the asset used as collateral.
3. Unsecured loans do not use collateral.
4. An example of unsecured lending is a business credit card.

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Answer 2

Explanation:

Collateral is a asset or piece of property thatt obrowser offers to a lenders as security for a loan.