2. What is a common characteristic of unsecured Inans? 1. Higher interest rates due to increased risk 2. Lower interest rates due to collateral 3. No interest rates 4. Interest rates based on the borrower's age

##Step 1: Understanding Unsecured Loans<br />###Unsecured loans are not backed by collateral, making them riskier for lenders. This increased risk is compensated for by charging higher interest rates.<br />##Step 2: Relating Risk to Interest Rates<br />###Higher risk for the lender translates directly to higher interest rates for the borrower. This is to offset the potential loss if the borrower defaults.<br /><br />#