American_Bankers_Association
CTFA · Question #281
Collateral is a/an:
The correct answer is B. An item of value used to secure the principle portion of a loan. See the full explanation below for the reasoning.
Fiduciary and Trust Activities
Question
Collateral is a/an:
Options
- AAn item of value used to secure the interest amount
- BAn item of value used to secure the principle portion of a loan
- CAn item of value used to secure the credit line of a loan
- DAn item of value used to secure the repayments of a loan
How the community answered
(68 responses)- A12% (8)
- B81% (55)
- C6% (4)
- D1% (1)
Topics
#collateral#secured loans#loan security#principal
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