The Full Wiki

More info on Collateral (finance)

Collateral (finance): Quiz


Did you know ...

More interesting facts on Collateral (finance)

Include this on your site/blog:
Question 1: Should the buyer fail to pay the loan under the mortgage loan agreement, the ownership of the real estate is transferred to the ________.
BankCommercial bankInvestment bankingOffshore bank

Question 2: In lending agreements, collateral is a borrower's pledge of specific property to a ________, to secure repayment of a loan[1][2].
LoanDebtBond (finance)Credit (finance)

Question 3: In a typical ________ transaction, for instance, the real estate being acquired with the help of the loan serves as collateral.
Mortgage loanCentral bankCommercial mortgageBond (finance)

Question 4: The bank uses a legal process called ________ to obtain real estate from a borrower who defaults on a mortgage loan obligation.
LienReal estate bubbleForeclosureCommon law

Question 5: The collateral serves as protection for a lender against a borrower's risk of default - that is, any borrower failing to pay the principal and ________ under the terms of a loan obligation.
Credit (finance)Bond (finance)DebtInterest

Question 6: Collateral, especially within ________, may traditionally refer to secured lending (also known as asset-based lending).
Offshore bankBankInvestment bankingCommercial bank

Question 7: If a borrower does default on a loan (due to ________ or other event), that borrower forfeits (gives up) the property pledged as collateral - and the lender then becomes the owner of the collateral.
BankruptcyDebtBond (finance)Insolvency


Got something to say? Make a comment.
Your name
Your email address