Economics B A-Level
Collateral
What Collateral means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Collateral
Check what you remember
Read the wording for your board, then hide it and explain Collateral in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
An asset, such as property or equipment, pledged by a borrower to secure a loan, which the bank can seize if the borrower defaults.
Topics that use Collateral
- Role of banks in the economy (Pearson Edexcel A-Level)
Related terms
- Business investment
- Consumer spending
- Credit provision
- Economic growth
- Financial intermediation
- Interest rates
- Saving
- Secured loans
Using Collateral in the exam
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