collateral
Pronunciation: [kəˈlætərəl]
Word
Context: “finance”
(noun) something valuable that you give to a lender, like a bank, to secure a loan. If you can't pay back the money, they can take the collateral instead.
Example
She used her car as collateral to get the loan.
Example
He didn't have any collateral to offer, so he couldn't borrow the money.
Example
What kind of collateral can you provide for the loan?
Context: “military”
(noun) damage or injury to something that is not the intended target, often seen in military operations. It's like when a good aim accidentally hurts someone or something else nearby.
Example
The airstrike was precise, with minimal collateral damage.
Example
There was significant collateral damage during the bombing, affecting nearby homes and schools.
Example
How can we reduce collateral damage in military actions?
Context: “finance”
(adjective) related to something that can be used as security for a loan. It describes an item that you can pledge when borrowing money.
Example
He offered several collateral assets, making the loan approval easier.
Example
The bank refused to accept collateral that was not easily valued.
Example
What makes an asset a good collateral item?
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