Question

which of the following involves taking a physical vehicle title to a lender and borrowing money by pledging your car as collateral?

○ tax refund loan

○ payday lending

○ title loan

○ pawn shop

Explanation:

• A tax refund loan is related to borrowing against expected tax refunds, not vehicle collateral.
• Payday lending involves short - term loans based on income, not vehicle titles.
• A title loan is defined as borrowing money by using a vehicle's title as collateral, which matches the description in the question.
• A pawn shop typically involves pawning personal items (not specifically vehicle titles in this defined way) for loans.

Answer:

C. title loan