Question

when you receive a loan, the money the lender gives you is called the ______ a. interest b. line of credit c. principal d. collateral

Explanation:

the funds received.

• Collateral is an asset pledged to secure a loan, not the loan funds.
• Principal refers specifically to the initial sum of money provided by a lender when a loan is issued.

Answer:

the funds received.

• Collateral is an asset pledged to secure a loan, not the loan funds.
• Principal refers specifically to the initial sum of money provided by a lender when a loan is issued.