4
AssignmentMultiple Choice

Credit and Loans

Question 4 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

Zachary's student loans are an example of what type of loan?

Answer
A
secured loan
B
unsecured loan
C
mortgage loan
D
auto loan

Explanation

Student loans are generally unsecured loans because they are not backed by specific collateral, such as a car or a house. An auto loan is tied to a vehicle, and a mortgage is tied to a home; those are secured loans. Therefore, Zachary’s student loans are an example of an unsecured loan.

AI-written and checked against the verified answer.

Previous
Next