Which of the following statements is true for unsecured credit?
A) Only consumers use unsecured credit for their personal transactions.
B) The creditor may require the debtor to convey to the creditor a lien on the debtor's property.
C) When goods are delivered on unsecured credit, the creditor retains all rights in the goods.
D) The unsecured credit transaction involves maximum risk to the creditor.

Question

Quizplus · Accepted Answer

The unsecured credit transaction involves a maximum of risk to the creditor (the person who extends the credit). When goods are delivered, services rendered, or money loaned on unsecured credit, the creditor gives up all rights in the goods, services, or money.

Which of the Following Statements Is True for Unsecured Credit