ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When a person brings an item to a pawnshop to obtain cash, the transaction is considered a(n):
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collateralized loan
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custodial payment
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unsecured loan
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sales agreement
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Explanation:
Detailed explanation-1: -What is meant by an uncollateralized loan? a. A loan not backed by a co-signer who agrees to cover the amount of the loan.
Detailed explanation-2: -Open-end credit often takes one of two forms: a loan or a credit card. In the consumer market, credit cards are the more common form as they provide flexible access to funds, which are available immediately again once a payment is received.
Detailed explanation-3: -Personal loans, credit cards, student loans are some examples of uncollateralized loans.
Detailed explanation-4: -Question 6 : Which of the following is considered to be open-end credit? Correct Answer : C: Department store charge cards.
There is 1 question to complete.