Unsecured loans are generally less risky to lenders than secured loans.Therefore secured loans typically charge a higher APR than unsecured loans.

Question

Quizplus · Accepted Answer

This statement is false. Secured loans require collateral to secure the loan, which reduces the risk to the lender. This allows for a lower interest rate compared to unsecured loans, which do not require collateral and are therefore riskier for the lender.

Unsecured Loans Are Generally Less Risky to Lenders Than Secured