Type of financial security in which loans are secured by borrower's property is classified as
A
municipal bonds
B
corporate bonds
C
U.S treasury bonds
D
mortgages
Correct Answer: mortgages
Type of financial security in which loans are secured by borrower's property is classified as mortgages. A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments.