Problemgustavo is a young doctor who lives in a country, Ask an Expert

Accounting

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Gustavo is a young doctor who lives in a country with a relatively inefficient legal and financial system. When Gustavo applied for a mortgage, he found that banks usually required collateral for up to 300% of the amount of the loan. Explain why banks might require that much collateral in such a financial system.

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Question: Comment on the consequences of such a system for economic growth.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170378

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