A loan backed up by collateral is knows as a(n)________ loan.

Name: A loan backed up by collateral is knows as a(n)________ loan.
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Question

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A secured loan is one that is backed up by collateral, such as a car or a house. In contrast, an unsecured loan does not require collateral and is backed only by the borrower's creditworthiness. Therefore, option C is the best choice as it correctly defines a loan that is backed by collateral.

A Loan Backed Up by Collateral Is Knows as A(n)________