Credit card debt is an example of a loan that is __________.
c. unsecured
Unsecured loan is the one that doesn't require collaterals (an asset a lender accepts as security for a loan), this means the loan is supported by the borrowers credtiworthness. This type of loan is used for small purchases, medical, bills, home reservations, etc. It characterizes by having a higher interest rate and shorter repayment term. Credit cards belong to this category. To access to one of this loans it is necessary for the borrower to have a good credit score.
How many members are on the Federal Reserve board of governors?
b. 7
They are nominated by the President and confirmed by the Senate. They guide the U.S. Central Bank.
