Collateral is typically required for a
A) single payment note.
B) short-term self-liquidating loan.
C) secured short-term loan.
D) line of credit.

Question

Quizplus · Accepted Answer

Collateral is typically required for a secured short-term loan, as the lender needs some form of security in case the borrower defaults on payment. Single payment notes and short-term self-liquidating loans may not require collateral, and a line of credit may not always require collateral depending on the terms and conditions set by the lender.

Collateral Is Typically Required for a