Which of the following would be considered an unacceptable consumer loan?
A) A home improvement loan, secured by a first mortgage
B) A home improvement loan, secured by a second mortgage
C) A $10,000 loan on a new $30,000 boat, secured by the boat
D) A loan on for 80% of the value on a new automobile, secured by the automobile
E) A loan for 95% of the value of used skydiving equipment, secured by the equipment

Question

Quizplus · Accepted Answer

A loan for used skydiving equipment would likely be considered an unacceptable consumer loan by most lenders, as it is a high-risk, low-value asset. The other choices involve loans secured by higher-value assets, such as homes or automobiles, making them more acceptable as consumer loans.

Which of the Following Would Be Considered an Unacceptable Consumer