Question

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 is one where the borrower pledges an asset (collateral) as security for the loan. Here, Elliott's car title is the collateral, meaning if he defaults, the lender can take the car. An education loan is for education, interest - free loans don't charge interest (not relevant here), and unsecured loans have no collateral. So the correct type is a secured loan.

Answer:

C. Secured loan