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When Angelica Started Her Own Fabric Company, She Took Out

Question 22

Multiple Choice

When Angelica started her own fabric company, she took out a loan from her local bank. Angelica took a second mortgage on her home as collateral for the loan. Which type of bank loan does this scenario best describe?


A) a secured loan
B) an unsecured loan
C) a line of credit
D) a credit rating loan
E) a prime rate loan

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