5
QuizMultiple Choice

Credit and Loans

Question 5 • Personal Finance - EL3403

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 often require the borrower to make a down payment, which reduces the amount financed. So the true statement is that they are secured loans and generally require a down payment.

AI-written and checked against the verified answer.

Previous
Next