1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vedmedyk [2.9K]
3 years ago
13

In two paragraphs, compare secured and unsecured types of credit. Secured sources of credit include title loans and personal loa

ns. Unsecured sources of credit include peer-to-peer loans and payday loans. Research one type of credit from each category (secured and unsecured) to compare the sources of credit. In the first paragraph, compare secured and unsecured credit and briefly describe the two types of loans you researched. In the second paragraph, compare these two types of loans. Your comparison should discuss elements such as risks and rates. Be sure to support your comparison with evidence.
Business
1 answer:
grigory [225]3 years ago
3 0

Secure credit is credit that is given with a connection to a piece of collateral, such as a car or a home. This means that, if you were to default on your payments, the lender would be legally entitled to taking possession of the collateral. An example of this is a car loan, which is a loan that is used to purchase a car. On the other hand, an unsecured loan is one that is not protected by any collateral. This means that the lender cannot immediately take your property of you default on the loan. An example of this is a credit card.

In the case of a secured car loan, interests tend to be lower because of the security that the collateral (the car) provides. Moreover, these loans tend to provide interest rates that are fixed, which means that it is easier to plan for this expense and avoid falling behind on payments. The risk for the lender is less with a secured loan, as he is able to take the property and resell it if the borrower is unable to repay the loan. On the other hand, credit card are riskier for the lender (the bank) as they are unsecured, and this means that they are unable to immediately take any property from the borrower who did not repay. Because of this high risk, interest rates also tend to be high.

You might be interested in
The major advantage of using bloom's taxonomy in developing objectives is that the taxonomy: helps in the formulation of criteri
baherus [9]
The major advantage of using Bloom's taxonomy in developing objectives is that the taxonomy <span>encourages educators to address complex cognitive processes as well as factual knowledge. Bloom's taxonomy is a hierarchy starting with create, evaluate, analyze, apply, understand and ending with remember. </span>
8 0
2 years ago
The difference between nominal GDP and real GDP is that:
Elenna [48]

Answer:

a. real GDP adjusts the value of goods for changes in the price level and nominal GDP does not.

Explanation:

The nominal GDP is calculated by using current prices without adjusting the inflation factor int the prices of goods that are accounted for in the total GDP value. On the other hand the real GDP is calculated by adjusting inflation int he pricesof the goods which included in total GDP value. So the correct option is a. real GDP adjusts the value of goods for changes in the price level and nominal GDP does not.

4 0
2 years ago
Some federal grants, such as categorical grants, ____________, while others, such as block grants, ____________.
Vinil7 [7]
Fund only individual citizens; fund only projects for states and localities
5 0
3 years ago
A firm based in mexico has found its growth is restricted by the limited liquidity of the mexican capital market. what are the f
Ronch [10]

The searching companies can work for equity or debt loans in order to raise money on global capital markets. The debt of a foreign institution, lender, and other debt suppliers is also an option to raise money in the capital market. As equity loans include the sale of equity to investors, the issue of bonds is part of debt loans. Capital costs are usually less than in the domestic market and the company can even borrow money from the bank. And enterprises need to be very careful to take into account the risk of adverse exchange rates because, if the peso is to be depreciated, they should be aware of the cost of acquiring the currency needed to repay a foreign exchange loan.

Moreover, foreign equity, floating foreign or Eurobonds offerings, or borrowing on the Euro currency markets may be considered by the Mexican firm. The euro currency market would then certainly provide the company with additional funding at a lower rate domestically. And if the peso decreases in the next 2 years, the company has to repay the credit in a different currency unless the company can use the future market. The value of euro currency loans would definitely be reduced.

We can recognize that the use of both foreign and euro bonds has the same disadvantages as the bonds have to be repaid in an anti-peso currency. The international bond market has important points that are worth considering, given the fewer regulations, disclosure requirements, and fiscal implications if the currency risk can be properly analyzed and minimized. Since the foreign equity market requires no payment to its stockholders and also has the greatest independence from its actions, it is perhaps the most attractive for the company. So, if the hesitations are to be overcome, investors will likely have loan strong growth prospects.

Learn more about loans here

brainly.com/question/25239160

#SPJ4

5 0
9 months ago
Jbx automobiles, a global firm, builds factories to serve more than one country and lower the mne's production costs. jbx automo
vaieri [72.5K]
The answer to the question mentioned above is the "ECONOMIES OF SCALE". JBS automobiles, a global firm builds factories to serve more than one country and lower the MNE's production costs. JBX automobiles most likely benefit from "Economies of Scale".
3 0
3 years ago
Other questions:
  • If production is occurring where marginal cost exceeds price, the purely competitive firm will __________.
    8·1 answer
  • If a firm shuts​ down, it A. will earn enough revenue to cover its variable costs but not all of its fixed costs. B. will produc
    12·1 answer
  • When it comes to saving money, what is a good rule of thumb?
    11·1 answer
  • 1. Formulate a unique business idea and state the mission and vision statements
    9·1 answer
  • Why do we subtract depreciation in the calculation of EBIAT if we are going to add it back as the next step of the Free Cash Flo
    13·1 answer
  • Luis had self-employment income of $9,732 reported in box 7 of Form 1099-Misc and has receipts for tools and supplies of $2,603.
    12·1 answer
  • Brandack is a leading manufacturer of storage devices. During a span of every five years, it produces one high-performance stora
    10·1 answer
  • During the year, Sheldon Company had net credit sales of $40,000. At the end of the year, before adjusting entries, the balance
    13·1 answer
  • magine that the current owner of the land in the previous exercise was willing to sell the land for $2 million. Assuming this am
    8·1 answer
  • A 2014 survey of 1,500 top managers, showed that only approximately _____% of companies achieved breakthrough innovation.
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!