A loan that requires the borrower to pledge specific assets as collateral is known as which of the following?
A) an amortized loan
B) a promissory loan
C) an unsecured loan
D) a secured loan

Question

Quizplus · Accepted Answer

A secured loan requires the borrower to pledge specific assets as collateral, which can be seized by the lender if the borrower defaults on the loan. This is in contrast to an unsecured loan, which does not require collateral. An amortized loan refers to a loan with equal payments made over a specific period, and a promissory loan is just another term for any type of loan where the borrower makes a promise to pay back the money borrowed.

A Loan That Requires the Borrower to Pledge Specific Assets