3
lesson pretestMultiple Choice

Pretest

Question 3 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Which statement is true of both mortgages and auto loans?

Answer
A
They are riskier than student loans for lenders.
B
They have higher interest rates than credit cards.
C
They do not require a minimum payment.
D
They are secured loans and generally require a down payment.

Explanation

Mortgages are secured by the home, and auto loans are secured by the vehicle. Both commonly require the borrower to pay some money up front as a down payment. Credit cards often have higher interest rates, and both mortgages and auto loans require regular minimum payments.

AI-written and checked against the verified answer.

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