Question: Q13 Why does unsecured debt represent more risk to an individual than secured debt? Select one: a. Unsecured debt typically has a lower interest rate

Q13

Why does unsecured debt represent more risk to an individual than secured debt?

Select one:

a. Unsecured debt typically has a lower interest rate

b. Secured debt payments do not affect the debt-to-income

c. Secured debt always involves liquid assets as collateral and reduces liquidity

d. Unsecured debt lacks collateral as a secondary source of repayment

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