Noah gets an auto loan, and the lender may take the car if he does not repay. What role does the car serve?

A mortgage is backed by the home being purchased. What is the home called in this loan arrangement?

Priya pledges money in her savings account to support a $2,000 loan. What is the pledged money?

A lender holds a gold watch as security for a $500 loan. What is the watch called?

When Evan finances a boat, he agrees that the lender can take the boat after default. What is the boat's role?

A borrower uses a motorcycle to guarantee repayment of a loan. What is the motorcycle?

A restaurant owner pledges an oven for a business loan, and the lender may claim it after default. What role does the oven play?

A borrower pledges a laptop to back a small loan. Which credit term names the laptop?

Jamal receives a $1,500 personal loan and pledges no property. Is the loan secured or unsecured?

A credit card account has no security deposit and no property pledged to the issuer. Is this credit secured or unsecured?

Tara finances a car, and the loan agreement allows repossession of that car after default. Is her auto loan secured or unsecured?

Rico was denied an unsecured $5,000 loan because of his limited credit history. Which step might help him qualify?

Devin’s credit card requires a $300 deposit that the issuer can keep if he stops paying. Is this credit secured or unsecured?

Lena borrows $7,000 to buy a trailer, and the lender may repossess the trailer if she defaults. What type of loan is this?

For a $700 loan, the lender holds Marcus's guitar until he repays. Is the loan secured or unsecured?

Rosa's cousin cosigns her $2,000 personal loan, but neither person pledges property. Is the loan secured or unsecured?

Which arrangement is secured credit?

Loan A and Loan B each lend $10,000 for one year with simple interest. Loan A is secured at 7%; Loan B is unsecured at 11%. How much less interest does Loan A charge?

Mia borrows $8,000. A pledged vehicle could sell for $5,000 after default, while an unsecured loan has no recovery. By how much does collateral reduce the lender's possible unpaid loss?

Two one-year $6,000 loans use simple interest. The secured loan is 6% APR and the unsecured loan is 9% APR. How much interest does the secured loan save?

Why can a lender sometimes offer a lower APR on a secured loan than on an otherwise similar unsecured loan?

Sara owes $15,000 on her car loan, but the car is now worth only $11,000. Why does this raise the lender's risk?

A borrower owes $12,000 on a secured loan. If default occurs, the collateral is expected to sell for $9,000 and proceeds reduce the balance. Before costs, how much could remain unpaid?

Kai's auto lender requires him to carry collision and comprehensive coverage until the loan is paid off. Why?

Kai can borrow $4,000 for one year with simple interest: unsecured at 12% or secured by a motorcycle at 8%. If money cost is the only criterion, which option has the lower interest charge?