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

Question

Quizplus · Accepted Answer

Collateral is typically required for a secured short-term loan, where the borrower pledges an asset as security for the loan. The lender has the right to seize the asset if the loan is not repaid. Collateral may not be required for a line of credit, short-term self-liquidating loan, or single-payment note.

Collateral Is Typically Required for a ________