Security posted by promissory note maker to the lender for repayment of money is known as collateral.

Name: Security posted by promissory note maker to the lender for repayment of money is known as collateral.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

The statement is true. Collateral is a security or property that is pledged by the borrower to the lender as a guarantee for the repayment of the loan. In case the borrower defaults on the loan, the lender can take possession of the pledged collateral to recover the money lent.

Security Posted by Promissory Note Maker to the Lender for Repayment