Asked by Felicia Owunwanne on Jun 24, 2024
Verified
The riskiest transaction for a creditor is a(n) ________.
A) unsecured credit transaction
B) secured credit transaction
C) mortgage
D) credit transaction involving a surety
Unsecured Credit
A form of credit that is not backed by collateral, making it riskier for lenders since repayment relies solely on the borrower's creditworthiness and promise to pay.
- Identify the hazards linked to various credit transactions from the viewpoint of lenders.
Verified Answer
DE
Donna ElizaldeJun 26, 2024
Final Answer :
A
Explanation :
An unsecured credit transaction involves a maximum of risk to the creditor.
Learning Objectives
- Identify the hazards linked to various credit transactions from the viewpoint of lenders.
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