QQuestionAccounting
QuestionAccounting
Secured loans are less costly than unsecured loans because:
A. They are backed by collateral.
B. They have lower interest rates.
C. The risk to the lender is reduced.
D. All of the above.
5 months agoReport content
Answer
Full Solution Locked
Sign in to view the complete step-by-step solution and unlock all study resources.
Step 1I'll solve this problem step by step, focusing on the key concepts of secured and unsecured loans.
Step 2: Understand the Definitions
- Secured loans are loans backed by collateral (an asset that can be seized if the borrower defaults) - Unsecured loans have no collateral and are based solely on the borrower's creditworthiness
Final Answer
All of the above. Secured loans are less costly because they are backed by collateral, have lower interest rates, and represent reduced risk to the lender.
Need Help with Homework?
Stuck on a difficult problem? We've got you covered:
- Post your question or upload an image
- Get instant step-by-step solutions
- Learn from our AI and community of students