Question

Zachary recently graduated from college. He paid for much of his education with student loans. These loans are not backed by any specific asset. If Zachary fails to pay them back, he may need to file for bankruptcy. Zachary’s student loans are an example of what type of loan?a. auto loan.b. mortgage loan.c. secured loan.d. unsecured loan

Answer 1

Answer:

Unsecured Loan

Explanation:

Unsecured Loan is the loan which is approved by the bank without the requirement of collateral. Rather pledging the asset, borrower need to qualify grounded on their income and the credit history.

In this scenario, Zachary who is a graduate took a loan which is not backed by any asset and he fails to pay the loan. It is a kind of unsecured loan.

Answer 2

Answer:

D

Explanation: