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An asset the borrower owns and pledges as guarantee until a loan is repaid is:

AInterest
BPrincipal
CDividend
DCollateral
Answer & Solution
Correct answer: D. Collateral
1. Land, buildings and livestock are examples. 2. This is collateral. 3. The lender may sell it if the borrower fails. _Source: syllabus Understanding Economic Development, Chapter 3, Money and Credit._
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