Which of the following is the best example of 'secured debt'?

A A personal loan without collateral.

B A credit card balance.

C A mortgage loan.

D Student loan debt.

✓ Correct Answer: Option C

Secured debt is backed by collateral, which the lender can seize if the borrower defaults. A mortgage loan is secured by the property being purchased, making it a prime example of secured debt.

💡 Why is C) the correct answer?

The correct answer to the question "Which of the following is the best example of 'secured debt'?" is Option C: A mortgage loan..

The other options — A) A personal loan without collateral., B) A credit card balance., D) Student loan debt. — are incorrect for this General Knowledge question. As explained above: Secured debt is backed by collateral, which the lender can seize if the borrower defaults. A mortgage loan is secured by the property being purchased, making it a prime example of secured debt.

📚 About This General Knowledge Practice Question

This 3-level General Knowledge question from the Abbreviations & Full Forms topic is part of One Paper Preparation's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free General Knowledge practice test or use flashcards for spaced repetition review.

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Which of the following is the best example of 'secured debt'?

✓ Correct Answer: Option C

📚 About This General Knowledge Practice Question

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