7
QuizMultiple Choice

Credit and Loans

Question 7 • Personal Finance - EL3403

An example of secured credit is a

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

Explanation

A mortgage is secured credit because the home serves as collateral for the loan. If the borrower does not repay, the lender may take the home through foreclosure. A credit card and a medical bill are generally unsecured, and a payday loan is not secured by a home or other major collateral.

AI-written and checked against the verified answer.

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