Which of the Following Is True of Unsecured Credit

question 77

Multiple Choice

Which of the following is true of unsecured credit?

• A) It relies on the debtor's promise to repay the principal.
• B) It is protected by collateral for the repayment of debt.
• C) It has no interest charge on the principal amount.
• D) It is possible to reclaim the amount even if the debtor is judgment proof.

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Definitions:

Guard

To protect or watch over someone or something in order to prevent harm or ensure safety.

Cognitive-behavioral

A therapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Rational-emotive

A form of psychotherapy focusing on identifying and changing irrational beliefs that cause emotional and behavioral issues.

Self-help

The act or practice of trying to improve oneself without the direct aid of others, often through the acquisition of knowledge.