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s2008m [1.1K]
1 year ago
5

Two reasons why collateral is important to a borrower

Business
1 answer:
Mumz [18]1 year ago
7 0

The reasons why collateral is important to a borrower are:

  • It serves as borrower's credit worthiness .
  • Collateral minimizes the risk for lenders.

<h3>What is Collateral?</h3>

Collateral  can be regarded as item of value that is been used to secure a loan.

In a case whereby  a borrower defaults on the loan,it is possible for lender to seize the collateral and sell it to recoup its losses. Banks require collateral on certain types of loans.

Learn more about Collateral at;

brainly.com/question/14037774

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stiv31 [10]

Answer:

accumulating?

Explanation:

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2 years ago
____________ contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tende
Helen [10]

Answer: Destination Contract.

Explanation:

Destination Contract is a contract for the sale of goods, in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination.

The seller assumes liability for any losses or damage to the goods until they are tendered at the destination specified in the contract.

The seller bears the risk of loss until he completes his delivery requirements as stated under the destination contract. If the goods are destroyed or damaged while in transit to buyer, the seller bears the loss.

After the delivery company has delivered the goods at the buyer’s location, then the seller is no longer liable for any damages after that.

5 0
3 years ago
Eskimo​ joe's sells​ branded, ready-to-wear​ clothing, hats, drink​ ware, coasters, and other products directly to end consumers
Leokris [45]
<span>These product categories represent the breadth of Eskimo Joe's product assortment. The breadth of product assortment refers to the amount of product lines, not necessarily the amount of a single product. Here, Eskimo Joe's frequently sells different product lines (clothing, hats, etc.). Thus, these categories represent the breadth of his assortment.</span>
8 0
2 years ago
Suppose that as the output of mobile phones increases, the cost of touch screens and other component parts decreases. If the mob
Katena32 [7]

Answer:

Downward sloping

Explanation:

The demand curve illustrate what's known as the law of demand in economics. Consumers buy more of something when its price is lower and less when the price is higher. There is an inverse relationship between price and demand, meaning that when one rises, the other falls.

Economists give three basic reasons for the law of demand and thus for the downward slope. First is the "income effect" when prices drop (or rise), people can buy more(or less) of a good for the same amount of money. Second is the "substitution effect" if a consumer doesn't see a meaningful difference between products, they'll buy the one with the lowest price, so a price increase will drive them toward substitutes, while a reduction will draw them in.

Third is the concept of "diminishing marginal utility": if you already have plenty of something, you have less of a need to buy more of it.

4 0
3 years ago
Suppose the government purposely changes the economy's cyclically adjusted budget from a deficit of 0 percent of real GDP to a d
ExtremeBDS [4]

Answer:

(b) Contractionary fiscal policy.

Explanation:

Correct word for the given statement is  contractionary fiscal policy.

Contractionary fiscal policy is a type of monetary approach that includes expanding charges, diminishing government uses or both so as to battle inflationary weights.  

Because of an expansion in charges, family units have less transfer salary to spend. Lower transfer pay diminishes utilization.

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