Question

20 types of loans which of the following is most likely a fixed - rate unsecured debt? student loan mortgage credit card auto loan

Explanation:

To determine the fixed - rate unsecured debt, we analyze each option:

• Mortgage: It is a secured debt as it is backed by the property (the house) as collateral. So it is not unsecured.
• Auto loan: This is also a secured debt because the vehicle being purchased acts as collateral for the loan.
• Credit card: Most credit cards have variable interest rates, not fixed - rate. So it does not fit the "fixed - rate" criterion.
• Student loan: Many student loans have a fixed interest rate, and they are typically unsecured (there is no physical asset like a house or a car that acts as collateral for the loan).

Answer:

A. Student loan