Question

8) How are the costs of secured and unsecured loans different?

A) A secured loan is typically associated with a lower fee schedule and so costs less; unsecured loans typically have a higher fee schedule and so they cost more.

B) A secured loan typically has lower interest rates costing less; an unsecured loan typically has higher interest rates costing more.

C) Secured loans generally have longer repayment terms and cost more; unsecured loans generally have shorter repayment terms and cost less.

D) Secured loans usually carry a higher interest rates and cost more; unsecured loans usually have lower interest rates and cost less.

Answer 1

THE ANSWER IS A

Step-by-step explanation:

Secured personal loans often come with lower interest rates, but your collateral can be seized if you default. With an unsecured personal loan, a lender can't take your collateral without a court's permission. But you may have to pay a higher interest rate.