Explain why collateral alone does not justify extending credit. Cite examples, using real estate or agricultural products as collateral.
Answer to relevant QuestionsWhich of the following loan requests by an off campus pizza parlor would be unacceptable, and why? a. To buy cheese for inventory b. To buy a pizza heating oven c. To buy a car for the owner d. To repay the original long ...Explain how it is possible for a firm to report rising NI each year yet continue to need more working capital financing from a bank. Subprime loans have higher loss rates than many other types of loans. Explain why lenders offer subprime loans. Describe the characteristics of the typical borrower in a subprime consumer loan. Suppose that four college students check their FICO scores and discover the information listed below. Describe how lenders might price loans to the borrowers with lower scores versus the borrowers with higher scores in terms ...Describe the characteristics of the ladder investment strategy and compare them to the barbell investment strategy. Why should the barbell strategy outperform the ladder strategy in a stable or declining interest rate ...
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