If Joan is unable to pay her mortgage, the bank may take her house away from her. Which of the following best describes Joan’s house? (1 point)

Question

Responses

bankruptcy

collateral

credit

interest

explain which is correct

Answer 1

Collateral is the best term to describe Joan's house in this situation because it is essentially serving as security for the mortgage loan from the bank. If Joan is unable to pay the mortgage, the bank can take the house as collateral to recover their losses.