Question

Which is an example of a loan secured by collateral?
A.Jama charged $2000 on her credit card for a vacation to Mexico.
B.Trey secured a $2000 loan to pay his college tuition.
C.Jorge secured a loan for $2000 from his uncle.
D.Joyce paid $2000 in downpayment and secured a loan on a new car.

Answer 1

Answer:

D. Joyce paid $2000 in down payment and secured a loan on a new car.

Explanation:

Answer 2

An example of collateral can be Joyce's downpayment of $2000, to the bank in order to secure the loan for a new car. Thus, option D is correct.

What is collateral?

Collateral has been given as something that is placed in terms of security in the time of granting loans and in the case of default payment it can be fortified.

The collateral can be in varying terms such as real estate collateral, business equipment collateral, and inventory collateral. cash collateral and many others, The importance of collateral have been to reduce the risk of the banks, in case of default when the business is unable to pay back the loan.

An example of collateral has been a downpayment made by Joyce of amount $2000, in order to secure the loan for the new car. Thus, option D is correct.

Learn more about collateral, here:

https://brainly.com/question/6779619

#SPJ5