![nyandog50](/avatars/46818.jpg)
nyandog50
30.06.2019 •
Social Studies
Why do banks and other financial institutions require collateral for loans? a) to raise needed funds b) banks want profit motives c) to reduce the risk of lending d) to assess the trustworthiness of the customer
Solved
Show answers
More tips
- S Style and Beauty How to braid friendship bracelets?...
- F Food and Cooking Delight for Gourmets: How to Prepare Liver Pate...
- C Computers and Internet How to Learn to Type Fast?...
- H Health and Medicine Angina: Causes, Symptoms, and Treatment...
- D Dating, Love, Relationships How to Overcome Jealousy: Tips and Tricks...
- H Health and Medicine 10 Ways to Cleanse Your Colon and Improve Your Health...
- W Work and Career How to Start Your Own Business: Tips and Recommendations...
- F Food and Cooking How to Make Delicious Cabbage Pies: The Best Recipes!...
- F Food and Cooking Discover Delicious Recipes You Can Make with Ground Meat...
- S Sport How to Do Push-ups Correctly?...
Answers on questions: Social Studies
- S Social Studies The author describes social and economic causes of the French Revolution. Which sentence states how the economic causes build on the social origins described previously?...
- L Law A growing number of large police departments have begun requiring applicants for their academies to have previously received at a minimum an associate’s degree and preferably a bachelor’s...
- S Social Studies Which idea is included in the concept of natural law? a. ethical principles can be discovered through reason. b. philosopher-kings tell citizens what ethical principles are. c. governments...
- B Business Sigma corporation applies overhead cost to jobs on the basis of direct labor cost. job v, which was started and completed during the current period, shows charges of $5,800 for direct...
- E English Which is the best way to combine sentence 1and 2 of oluadah equino wrote a book...
Ответ:
The answer is C: to reduce the risk of lending
Banks and other financial institutions require collateral for loans to reduce the risk of lending.
Explanation:
Collateral refers to anything or an item of value which is accepted as a substitute form of repayment in case loan is not repaid. It is an asset can be taken if an individual fail to pay his or her loan. If the individual fails to repay the loan, the bank will seize and sell the assets. It is a legal binding contract.
Ответ: