Secure property rights mean that many people can own homes because __________.

Athe house itself can be used as collateral on a loan
Bthe government guarantees the house will be paid for
Cseveral families can go in together on the purchase of the home
Dwealthy citizens have a wide choice of homes available to them

Verified Answer :

A. the house itself can be used as collateral on a loan

The first alternative is correct (A).

Assuring property rights is a way of protecting the individual's right to property, which is essential in a democracy. Without this type of guarantee there would be legal and patrimonial insecurity.

From this type of guarantee, many people can have their own home, because when buying loans from the banks, the house itself can serve as a guarantee. If the owner of the house does not comply with the installments, he may lose the house.