Question

what is collateral?
a type of unsecured credit
property given as security for a loan
funds borrowed to buy property
a payment to reduce overall debt

Explanation:

To determine the correct answer, we analyze each option:

• "A type of unsecured credit" is incorrect because collateral is related to secured credit (it secures the loan).
• "Property given as security for a loan" matches the definition of collateral, as collateral is an asset pledged to a lender to secure a loan.
• "Funds borrowed to buy property" describes a mortgage or loan for property, not collateral.
• "A payment to reduce overall debt" describes a payment like a principal payment, not collateral.

Answer:

B. property given as security for a loan