Explain the Difference Between a Secured and an Unsecured Loan

question 31

Essay

Explain the difference between a secured and an unsecured loan, and the interest rate you would expect to see charged on each (all other factors equal).

---

Definitions:

Perception

The process of organizing and interpreting sensory information to make it meaningful.

Absolute Threshold

The minimum stimulus intensity required to detect a stimulus or produce a sensory response in at least 50% of trials, indicating the limits of human sensory perception.

Difference Threshold

The smallest amount of change between two stimuli that a person can detect 50% of the time, also known as the just noticeable difference (JND).

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time, leading to a decrease in sensation.