Loans made for specific purposes using formally negotiated contracts that specify the borrowing terms and repayments are called:
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A. B. C. D.C
The answer to this question is C. Consumer loans.
Consumer loans are loans made to individuals, rather than businesses, for specific purposes. These loans are often used to finance major purchases such as cars, homes, or education. They are typically made using formally negotiated contracts that specify the borrowing terms and repayment schedules.
Consumer loans can be either secured or unsecured. Secured loans are backed by collateral, such as a car or a house, while unsecured loans are not. Interest rates on secured loans are generally lower than on unsecured loans, since the lender has a lower risk of losing money if the borrower defaults.
Some common types of consumer loans include:
Auto loans: These are loans used to finance the purchase of a car or other vehicle. The loan is secured by the vehicle itself, which serves as collateral.
Home loans: These are loans used to purchase a home or other real estate. They are usually secured by the property being purchased.
Personal loans: These are unsecured loans that can be used for any purpose. They often have higher interest rates than secured loans, since the lender has no collateral to fall back on if the borrower defaults.
Student loans: These are loans used to pay for education expenses. They can be either federal or private, and may be secured or unsecured.
In summary, consumer loans are loans made to individuals for specific purposes, using formally negotiated contracts that specify the borrowing terms and repayment schedules. They can be secured or unsecured, and include types such as auto loans, home loans, personal loans, and student loans.