A loan wherein the borrower pledges property or other assets to assure the creditor of repayment is a

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Multiple Choice

A loan wherein the borrower pledges property or other assets to assure the creditor of repayment is a

Explanation:
When a borrower pledges property or other assets to guarantee repayment, the loan is secured by collateral. This arrangement lowers the lender’s risk because they have a claim on the asset if the borrower defaults, which often allows for better terms for the borrower. Unsecured loans rely on the borrower's promise and creditworthiness without asset backing. Closed-ended loans have a fixed amount and repayment schedule, while revolving loans (like a line of credit) allow ongoing borrowing and repayment. The defining feature here is the collateral securing the loan, making it a secured loan.

When a borrower pledges property or other assets to guarantee repayment, the loan is secured by collateral. This arrangement lowers the lender’s risk because they have a claim on the asset if the borrower defaults, which often allows for better terms for the borrower. Unsecured loans rely on the borrower's promise and creditworthiness without asset backing. Closed-ended loans have a fixed amount and repayment schedule, while revolving loans (like a line of credit) allow ongoing borrowing and repayment. The defining feature here is the collateral securing the loan, making it a secured loan.

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