8
QuizMultiple Choice

Credit and Loans — Quiz

Question 8 • Economics

An example of secured credit is a

Answer
A
credit card.
B
mortgage.
C
medical bill.
D
payday loan.

Explanation

Secured credit is backed by collateral, an asset the lender can claim if the borrower does not repay. A mortgage is secured by the home being purchased, so it is the correct choice. Payday loans, medical bills, and credit cards are generally unsecured.

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