Question

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 a guarantee to a lender.

Answer 2

The correct option for your question is C.- It is an asset of the borrower used as a guarantee to a lender.