The frequency of default on a home loan is ________ the frequency of default on a credit card.
A)much lower than
B)much higher than
C)a bit lower than
D)a bit higher than

Question

Quizplus · Accepted Answer

Home loans are secured loans which means there is collateral (the home) involved and hence the risk of default is much lower compared to credit cards which are unsecured loans. Additionally, the amount of the loan is generally much higher for home loans compared to credit cards which could be another reason for the lower default rate.

The Frequency of Default on a Home Loan Is ________