7
lesson pretestMultiple Choice

Pretest

Question 7 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

An example of secured credit is a

Answer
A
mortgage.
B
payday loan.
C
medical bill.
D
credit card.

Explanation

Secured credit is backed by collateral, an asset the lender can claim if the borrower does not repay. A mortgage is secured by the home being purchased, so it is the correct choice. Payday loans, medical bills, and credit cards are generally unsecured.

AI-written and checked against the verified answer.

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