Question

Peter, who is 30 years old and has a job, wants to pay for his car with a loan. What is true?
a
His lender takes more risk with this type of loan.
0
b
The vehicle is the collateral of this secured loan.
The APR will be lower the first month of the loan.
Od
A co-signer will be needed for this unsecured loan.

Answer 1

Answer:

B. The vehicle is the collateral of this secured loan.

Explanation:

When collecting a loan, there is always the option of giving a collateral for the loan in case there is a default in payment.

Therefore, Peter who has a job and wants to collect a loan to pay for his car is already putting the car as a collateral for the loan. If he defaults on payment, then his car will be repossessed.

Answer 2

Answer:

B. The vehicle is the collateral of this secured loan.

Explanation: