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Collateralized debt is also known asA) unsecured debt.B) secured debt.C) unrestricted debt.D) promissory debt.

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Solution

Collateralized debt is also known as B) secured debt.

Here's why:

Collateralized debt refers to a type of loan that is backed by an asset or collateral. If the borrower defaults on their loan payments, the lender can seize the collateral to recoup their losses. Because the debt is secured by an asset, it is known as secured debt.

Options A, C, and D are incorrect because:

A) Unsecured debt is a type of debt that is not backed by any collateral.

C) Unrestricted debt does not exist as a term in finance.

D) Promissory debt could refer to any debt that involves a promissory note, which is a written promise to pay a certain amount of money, and it could be either secured or unsecured.

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