QuestionFill in the blank: A is a short, expensive loan backed by a vehicle title. Choose 1: (A) title loan (B) mortgage loan (C) payday loan.
Studdy Solution
STEP 1
Assumptions1. The loan is short and expensive. The loan is backed by the title of a vehicle, like a car, a truck, or a motorcycle
STEP 2
We need to choose the correct term that fits the description given in the problem. The options are(A) title loan(B) mortgage loan(C) payday loan
STEP 3
A mortgage loan is typically a long-term loan used to purchase property or real estate, not a vehicle. So, option (B) is not correct.
STEP 4
A payday loan is a type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. It is not typically backed by the title of a vehicle. So, option (C) is not correct.
STEP 5
A title loan is a type of secured loan where borrowers can use their vehicle title as collateral. Borrowers who get title loans must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for a loan amount. So, option (A) fits the description given in the problem.
The correct answer is (A) title loan.
Was this helpful?
