Questions: How is a secured loan different from an unsecured loan? A. A secured loan includes interest. B. A secured loan uses property as collateral. C. A secured loan requires a high down payment. D. A secured loan is paid in monthly installments.

The answer is B. A secured loan uses property as collateral.

Both secured and unsecured loans typically include interest as part of the repayment terms. The presence of interest is not a distinguishing factor between the two types of loans.

This is the correct distinction. A secured loan requires the borrower to provide an asset, such as a house or car, as collateral. This means that if the borrower defaults on the loan, the lender has the right to seize the collateral to recover the owed amount. This reduces the lender's risk compared to unsecured loans.

While some secured loans, like mortgages, may require a down payment, this is not a universal characteristic of all secured loans. The requirement for a down payment depends on the type of loan and the lender's policies.

Both secured and unsecured loans can be structured to be repaid in monthly installments. The repayment schedule is not a defining feature that differentiates secured loans from unsecured loans.