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Which describes the difference between secured and unsecured credit?

Secured credit is backed by an asset equal to the value of a loan, while unsecured credit is not guaranteed by a material object.
Unsecured credit is backed by an asset equal to the value of a loan, while secured credit is not guaranteed by a material object.
Secured credit is risky because banks cannot seize assets, while unsecured credit is less risky because it is backed by material objects.
Unsecured credit enables lenders to seize an asset if a loan is not paid, while secured credit prohibits lenders from taking material objects.

The difference between secured and unsecured credit is secured credit is backed by an asset equal to the value of a loan, while unsecured credit is not guaranteed by a material object.

What is secured and unsecured credit?

Secured credit is when a loan is backed by a collateral. The collateral is usually an asset owned by the borrower. An example is a home.

Unsecured credit is a credit that is not backed by any asset. An example of unsecured credit is a credit card. Unsecured credit is more risky and thus it has a higher rate of interest.

To learn more about unscecured credit, please check: https://brainly.com/question/1154957