contestada

Something of value that is used to back up a loan is known as what?

Dividends
Collateral
Capacity
Conditions

Respuesta :

 B. collateral is the right answer

Tabbey

Answer: Collateral

Explanation:

Collateral is known to be something of value or a property which a borrower gives to a lender in return for money borrowed. Furthermore, this is usually a form of security for the lender in case the borrower does not pay the loan. Thus, if the borrower fails to pay back the loan, the lender takes the property.