which describes the difference between secured and unsecured credit?\n○ secured credit is backed by an asset…

which describes the difference between secured and unsecured credit?\n○ secured credit is backed by an asset equal to the value of a loan, while unsecured credit is not guaranteed by a material object.\n○ unsecured credit is backed by an asset equal to the value of a loan, while secured credit is not guaranteed by a material object.\n○ secured credit is risky because banks cannot seize assets, while unsecured credit is less risky because it is backed by material objects.\n○ unsecured credit enables lenders to seize an asset if a loan is not paid, while secured credit prohibits lenders from taking material objects.

which describes the difference between secured and unsecured credit?\n○ secured credit is backed by an asset equal to the value of a loan, while unsecured credit is not guaranteed by a material object.\n○ unsecured credit is backed by an asset equal to the value of a loan, while secured credit is not guaranteed by a material object.\n○ secured credit is risky because banks cannot seize assets, while unsecured credit is less risky because it is backed by material objects.\n○ unsecured credit enables lenders to seize an asset if a loan is not paid, while secured credit prohibits lenders from taking material objects.

Answer

Brief Explanations:

Secured credit has collateral (an asset equal to loan - value) that a lender can seize if the loan isn't paid. Unsecured credit has no such material - object guarantee.

Answer:

Secured credit is backed by an asset equal to the value of a loan, while unsecured credit is not guaranteed by a material object.