Question

What loans tend to have a lower interest rate than credit cards and are used for specific purposes such as purchasing a home or car? Select one: a. Open-end loans O b. Bank loans Oc. Close-end loans O d. Credit union loans​

Answer 1

The types of loans that tend to have a lower interest rate than credit cards and are used for specific purposes such as purchasing a home or car are c. close-end loans.

What are closed-end loans?

Closed-end loans are designed for a particular purpose and are disbursed at once.

Unlike open-end loans, bank loans, or credit union loans, closed-end loans are not re-issued and the debtor is expected to pay back within a specific date.

Thus, the types of loans that tend to have a lower interest rate than credit cards and are used for specific purposes such as purchasing a home or car are c. close-end loans.

Learn more about close-end loans at brainly.com/question/1937712

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