Question

30. Collateral would be needed in which of the following? a. trade credit b. secured loans...

30. Collateral would be needed in which of the following?

a. trade credit

b. secured loans

c. unsecured loans

d. line of credit

e. commercial paper

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Homework Answers

Answer #1

Solution:

Secured loan is a loan in which borrower pledges some assets as collateral.Hence Collateral would be needed in case of secured loan.

Trade credit,unsecured loan and commercial papers are made without collateral

line of credit is a loan that is very similar a credit card as you get specific amount of money and you are charged interest only on the amount that you use.However line of credit can be seured(require collateral) or unsecured.

Accordingly,correct option is 'b' i.e secured loans

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