Secured debt is debt that:
A) carries a fixed interest rate.
B) is held by a trustee until repayment.
C) has more than one year until maturity.
D) has specific collateral backing it.

Question

Quizplus · Accepted Answer

Secured debt is debt that has specific collateral backing it, meaning that if the borrower defaults on the loan, the lender can seize and sell the collateral to recoup its losses. The other options (fixed interest rate, held by trustee, more than one year until maturity) do not necessarily define secured debt.

Secured Debt Is Debt That