Mariah is looking to obtain a loan to start a small business. She speaks with a financial institution and it informs her that she will be approved for the loan, but that if she were to default on the loan for any reason, the bank would have to seize her building and all the equipment in it. This is an example of _______.
A. an unsecured loan
B. a debenture
C. a trade credit
D. a compensating balance
E. collateral
Answer: E. collateral