The interest rate charged on an unsecured short-term P-note to a company is generally ________ the interest rate on a secured loan.
A) lower than
B) the same as
C) higher than
D) unrelated to

Question

Quizplus · Accepted Answer

Interest rates on unsecured loans are generally higher than secured loans as the lender is taking on more risk without any collateral to back up the loan.

The Interest Rate Charged on an Unsecured Short-Term P-Note to a Company