Choose the option that best completes the sentence. I had to put up my house as _____ for the bank loan.

To complete the sentence, we need to choose the word that best fits the context of securing a bank loan using the house. Let’s examine the options:

• Pledge: This term indicates a promise or commitment but is not specific to banking terminology related to loans and assets.




• Agreement: This refers to a mutual understanding or arrangement between parties, and while it could involve loans, it does not specifically describe using an asset to secure a loan.




• Collateral: This is a specific banking and financial term that refers to an asset pledged by a borrower to a lender (usually in the form of property, like a house), to secure the repayment of a loan. It ensures the lender that the loan will be repaid or they can seize the asset if it isn’t. Therefore, this is the most appropriate word to complete the sentence.




• Surety: This refers to a person who takes responsibility for another's performance of an undertaking, such as the payment of a loan, which is not the same as placing one's own asset at stake for a loan.

Therefore, the best option is collateral because it directly relates to using an asset to secure a loan. The completed sentence should be:

I had to put up my house as collateral for the bank loan.