Which of the following is an example of tangible collateral?

Tangible collateral refers to physical assets that can be seen and touched. Livestock fits this definition perfectly, as it consists of animals that can be physically possessed and has intrinsic value that can be realized in the event of a default. When used as collateral, tangible assets like livestock offer lenders a degree of security since they can be seized and sold to recover debts.

The other options do not qualify as tangible collateral. Bank accounts represent a claim to monetary assets but do not involve physical items. Goodwill pertains to the intangible value associated with a business’s reputation and customer relationships and cannot be physically possessed. Similarly, investment portfolios consist of financial instruments that represent ownership rights but lack physical form. Hence, livestock stands out as the only true example of tangible collateral in this context.