An asset used by a borrower to secure a loan is called:
A) an opportunity cost.
B) interest.
C) bunching.
D) collateral.

Name: An asset used by a borrower to secure a loan is called: A) an opportunity cost. B) interest. C) bunching. D) collateral.
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Collateral is an asset that a borrower pledges to a lender as security for a loan. In case the borrower defaults on the loan, the lender has the right to seize and sell the collateral to recover some or all of the outstanding debt.

An Asset Used by a Borrower to Secure a Loan