6
QuizMultiple Choice

Credit and Loans — Quiz

Question 6 • Economics

Which statement is true of both mortgages and auto loans?

Answer
A
They are riskier than student loans for lenders.
B
They do not require a minimum payment.
C
They are secured loans and generally require a down payment.
D
They have higher interest rates than credit cards.

Explanation

Mortgages are secured by the home, and auto loans are secured by the vehicle. Both commonly require the borrower to pay some money up front as a down payment. Credit cards often have higher interest rates, and both mortgages and auto loans require regular minimum payments.

AI-written and checked against the verified answer.

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