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Serjik [45]
4 years ago
12

Why do some lenders require borrowers to secure credit?

Social Studies
2 answers:
maks197457 [2]4 years ago
8 0
The correct answer is D
Vika [28.1K]4 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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UkoKoshka [18]

Answer:

<u>Effectiveness</u>

- Traffic fines : Discourage driving above speed limit by exposing the drivers to monetary loss in the forms of fines.

- Speed Humps: Discourage driving above speed limit by making the drivers more cautious and constantly reduce their speed to prevent the damage on their vehicles.

- Scholar patrol: Discourage driving above speed limit by sending out volunteers to physically watch the road and notify the drivers who go beyond speed limit.

- Arrive alive campaign : Creates social awareness for the drivers to watch their speed for the safety of others and their own.

<u>Ineffectiveness:</u>

- Social campaigns and creating speed humps require huge amount of government funding, which might reduce the allocation for other government programs.

- Traffic fines and Scholar patrol requires constant/direct human labor. This make it impossible for them to be operated 24/7.

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3 years ago
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3 years ago
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4 years ago
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Answer:

Revenue will be used to fund government programs and build infrastructures.

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For example, Revenue is needed to fund the constructions of public schools. The citizens could use these schools to obtain the necessary education that they need for their jobs in the future. Another example would be providing subsidies for small businesses (such as farmers, local eatery, or small manufacturing company)

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