9. Collateral is: A) The interest rate on a loan B) Property or assets pledged to secure a loan C) The name of the loan officer D) The amount of the monthly payment

**Answer:** B) Property or assets pledged to secure a loan **Explanation:** Collateral refers to assets or property that a borrower offers to a lender to secure a loan. If the borrower fails to repay the loan as agreed, the lender has the right to seize the collateral to recoup their losses. This reduces the lender's risk and can sometimes help borrowers obtain better loan terms, such as lower interest rates. **Why the other options are incorrect:** - **A) The interest rate on a loan:** This is the cost of borrowing, expressed as a percentage of the loan amount, not collateral. - **C) The name of the loan officer:** The loan officer is the individual handling the loan application, not related to collateral. - **D) The amount of the monthly payment:** This is the scheduled payment the borrower makes each month to repay the loan, unrelated to collateral.