Question

Which statement is true of both mortgages and auto loans?

They are riskier than student loans for lenders.
They do not require a minimum payment.
They are secured loans and generally require a down payment.
They have higher interest rates than credit cards.

Answer 1

They are secured loans and generally require a down payment.

Explanation: Mortgages and auto loans are secured by the home or vehicle and lenders typically expect a down payment. The other statements are false: these loans are generally less risky than unsecured student loans (and often lower risk than many consumer loans due to collateral), they do require minimum monthly payments, and they usually have lower interest rates than credit cards.