A property in which a security interest is taken is called ________.
A) collateral
B) escrow
C) attachment
D) leverage

Question

Quizplus · Accepted Answer

A property in which a security interest is taken is called collateral. This means that the property is pledged as security for a loan or debt, and may be seized or sold by the lender to recover the debt if the borrower defaults on their payments. Escrow refers to a third-party holding funds or property until a transaction is complete. Attachment is a legal process by which a creditor secures a claim against a debtors property. Leverage refers to the use of borrowed funds or other financial instruments to increase the potential return on an investment.

A Property in Which a Security Interest Is Taken Is