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AssignmentMultiple Choice

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Question 1 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

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

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

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