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What is collateral in loan capital - SS2 Accounting Loan Capital: Terminologies Used Question

What is collateral in loan capital?

A

The frequency and amount of each payment that the borrower must make to repay the loan

B

An asset that the borrower pledges as security for the loan

 

C

Terms and conditions that the lender imposes on the borrower to ensure repayment

correct option: b
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