A security that is posted for the repayment of a promissory note is known as a(n)________.
A) collateral
B) mortgage
C) deposit
D) installment

Question

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Collateral is a security that is pledged for the repayment of a loan or a promissory note. It can be any asset or property that has value and can be sold to recover the amount of the loan in case the borrower defaults on the payments. A mortgage is a specific type of collateral that is used for a real estate loan, while a deposit is money that is paid as security or down payment for a purchase or a rental. Installment refers to a series of payments made over time towards the repayment of a loan or a debt.

A Security That Is Posted for the Repayment of a Promissory