What is not an institutional requirement for markets to operate smoothly?

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Having a long credit that will be corrected is better that a short credit that is clear is simply because with long credit history, a prospective lender can see how you have operated your credit facility over a considerable period. nobody's credit history is perfect - everyone has at least 1 or 2 lapses on their record. have short history of your credit doesn't show patterns or trends of persistent late payments.

Answer consumption and investment; net exports       (or)                           real interest rate ; ; ; ///   exchange rate;