Dawn Owns a Hair Salon and Wants to Open Another

Multiple Choice

Dawn owns a hair salon and wants to open another store in the downtown shopping district. She goes to the bank to get a loan to start her business, and the bank gives her a loan that is backed by her good reputation and previous credit rating. Which type of bank loan does this scenario best describe?

A) a secured loan
B) an unsecured loan
C) a line of credit
D) a prime rate loan
E) a collateral loan