15
QuizMultiple Choice

Study Guide and Quiz

Question 15 • S25 Introduction to Business A (Theisen)

When you receive a loan, the money the lender gives you is called the ____________.

Answer
A
Interest
B
Line of credit
C
Principal
D
Collateral

Explanation

The principal is the original amount of money borrowed from a lender. Interest is the cost of borrowing, while collateral is property pledged to secure a loan. So the money the lender gives you is the principal.

AI-written and checked against the verified answer.

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