26
QuizMultiple Choice

Using Credit

Question 26 • 26-27 Ignite Technical Math-Financial Math - MA2007

What is a secure line of credit?

Answer
A
A line of credit offered only to individuals with excellent credit ratings.
B
A line of credit offered to a business or corporation.
C
A line of credit backed by the government.
D
A line of credit backed by collateral.

Explanation

A secured line of credit is backed by collateral, such as a home or other asset. The collateral gives the lender something to claim if the borrower does not repay, so the correct choice is “a line of credit backed by collateral.”

AI-written and checked against the verified answer.

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