what is colletral.??
Answers
Answer:
something pledged as security for repayment of a loan, to be forfeited in the event of a default.
"she put her house up as collateral for the bank loan
Answer:
he term "collateral security" might refer to the safety that a particular asset gives a lender in case a borrower fails to fulfill his or her obligation of making payments. That is, if the borrower can no longer make his or her loan payments as agreed, the lender might take the collateral and sell it to recoup some or all of the money he or she had lent to the debtor. Also, "collateral securities" might refer to financial market securities such as stocks and bonds, because these assets can be used to secure a loan, such as in what is called margin trading. In finance, all sorts of loans can be be backed by any type of collateral security. For example, mortgage loans usually are backed by real estate properties.
Explanation: