The following are various types of secured debt:
I.mortgage bonds;
II.collateral trust bonds;
III.equipment trust certificate;
IV.debentures
A)I only
B)I and II only
C)I, II, and III only
D)I, II, III, and IV

Question

Quizplus · Accepted Answer

Secured debt is backed by collateral to reduce the risk associated with lending. Mortgage bonds are secured by real estate, collateral trust bonds by stocks, bonds, or other assets, and equipment trust certificates by physical equipment. Debentures, however, are a type of unsecured debt, relying on the creditworthiness of the issuer rather than collateral.

The Following Are Various Types of Secured Debt