Question

Secured debts must have

A. a mortgage
B. certified lenders
C. collateral
D. low interest rates

Answer 1

C. Collateral

Explanation:

Secured debts are secured by an asset, such as a house or car. The asset serves as collateral for the debt (hence why it's called a "secured" debt). Lenders place a lien on the asset, giving them the right to seize (e.g., repossess or foreclose) it if you become delinquent.