6
QuizMultiple Choice

Making Spending Decisions — Cumulative exam

Question 6 • ***CPS Online Personal Finance fall – 3-2027

Which type of credit is most likely to be unsecured?

Answer
A
auto loans
B
credit cards
C
mortgage loans
D
personal loans

Explanation

Credit cards are typically unsecured: you can borrow without pledging a specific asset as collateral. Auto loans are secured by the vehicle, and mortgage loans are secured by the home. Personal loans can be secured or unsecured, so credit cards are the clearest choice.

AI-written and checked against the verified answer.

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