COLLATERAL

Mortgages and car loans are two types of collateralized loans

• TRUE

• FALSE

If a borrower defaults on the loan, the lender can't seize the collateral and sell it to recoup its losses.

• True

• False

Other personal assets, such as a savings or investment account, can be used to secure a collateralized personal loan

• True

• False

When you take out a mortgage, your home becomes the collateral.

• True

• False

The types of collateral that lenders commonly accept will not include cars—only if they are paid off in full—bank savings deposits, and investment accounts. Retirement accounts are not usually accepted as collateral.

• True

• False

if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.

• True

• False

Unsecured loans do not use collateral

• True

• False

Borrowers do offers collateral when using a credit card.

• True

• False

In general, a lender will not require you to offer collateral.

• True

• False

Collateral is an item of value used to secure a loan.

• TRUE

• FALSE