Question

quiz
question 4 of 8
elliott renovates his home using a loan that requires him to sign over the title to his car if he doesnt pay as promised. what type of loan does elliott have?
select a response.
○ education loan
○ interest - free loan
○ secured loan
○ unsecured loan

Explanation:

A secured loan requires the borrower to pledge an asset (collateral) that the lender can seize if the borrower fails to repay the loan. Here, Elliott's car is the collateral, as he must sign over its title if he doesn't pay as promised. Education loans are for educational costs, interest-free loans have no interest charges, and unsecured loans have no collateral, so these do not match the scenario.

Answer:

Secured loan