Question

Which type of credit card carries the most risk?. . A. Secured with fixed interest rate. . B.Secured with variable interest rate. . C. Unsecured with fixed interest rate. . D.Unsecured with variable interest rate

Answer 1

Unsecured credit cards with variable interest rates are generally considered the riskiest due to the lack of collateral and unpredictable borrowing costs.

Step-by-step explanation:

When considering which type of credit card carries the most risk, an unsecured credit card with a variable interest rate is typically seen as the riskiest option. Secured credit cards require a deposit, which reduces risk for the lender, but with an unsecured card, there is no such collateral. Furthermore, a variable interest rate can fluctuate, potentially increasing the cost of borrowing if the rate rises. Fixed interest rates provide more predictability over the borrowing costs.

Answer 2

The type of credit card that carries the most risk depends you are an individual or an institution. For an individual it is much riskier with letter B, secured with variable interest rate. For an institution it is much riskier with letter D, unsecured with variable interest rate