Certainly! Here is a clear and concise answer to the question:
A credit source that is not guaranteed with collateral is known as:
A) unsecured debt
Explanation:
1. Unsecured debt refers to borrowing that is not backed by any collateral. This means that the lender does not have a claim on any specific asset in case the borrower fails to repay the debt.
2. Examples of unsecured debt include credit cards, personal loans, and student loans where the lender relies on the borrower's creditworthiness rather than any specific asset to secure the loan.
In this context, the correct answer is A) unsecured debt. It distinguishes from secured debt, which is backed by collateral, making it an important concept in understanding different types of credit sources.
