Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'secured consumer loan'?

A. loan to one or more individuals for household, family, or other personal expenditures in which the borrower pledges some asset via a security agreement as collateral for the loan, or that is secured via third-party guarantee
B. loan to one or more individuals for household, family, or other personal expenditures granted based on the strength of the borrower's credit history or reputation in the community
C. secured loan that is secured with cash or other acceptable collateral (real property, securities or other assets) provided by the borrower as specified in the collateral agreement
D. collateralized, simple-interest loan that is repaid in monthly installments over a period of typically three to five years, for the purpose of purchasing a vehicle

Answer: loan to one or more individuals for household, family, or other personal expenditures in which the borrower pledges some asset via a security agreement as collateral for the loan, or that is secured via third-party guarantee