Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

fill in the blank question if the line of credit is secured by a pledge…

Question

fill in the blank question
if the line of credit is secured by a pledge of assets the interest rate charged will be
need help? review these concept resources.
read about the concept

Explanation:

Brief Explanations

Secured lines of credit have collateral (pledged assets) that reduce the lender's risk. Lenders charge lower interest rates for less risky credit products compared to unsecured ones, as they can seize assets if the borrower defaults.

Answer:

lower (than an unsecured line of credit)