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Serjik [45]
3 years ago
12

Why do some lenders require borrowers to secure credit?

Social Studies
2 answers:
maks197457 [2]3 years ago
8 0
The correct answer is D
Vika [28.1K]3 years ago
6 0

The correct answer is D.

Lenders give some money to borrowers in exchange for a retribution in the form of interest payments. In some cases, the interest charged is higher because the risk assumed by the lender with a certain borrower is very high. For example, in the case of countries' debt, debt from countries with larger risk of default has a large risk premium attached, which increases the interest that has to be repaid for that debt.

Another method to decrease the risk assumed is to provide secured credits, where the lender requires a collateral from the borrower, than the lender will keep in case of default in the repayments of the principal.

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The economy of the North Central Hills region relies more on the <u>Mississippi River</u> than the other northeastern regions.

<h3>What is the importance of the Mississippi River?</h3>

The Mississippi River with its river size, habitat diversity, and biological productivity has remained famous for aiding the industrialization of the United States.

The vital resources provided by the Mississippi River include:

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Thus, the economy of the North Central Hills region relies more on the <u>Mississippi River</u> than the other northeastern regions.

Learn more about the Mississippi River at brainly.com/question/7999616

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