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Business, 28.05.2020 01:00 peralesdavid34

Suppose Latasha comes into a large sum of money and decides to lend it out to earn interest on it. She realizes, however, that even if she could evaluate whether a borrower is creditworthy before making a loan, she cannot ensure that her borrower will use the money as promised. She therefore deposits her money in a local bank, a financial intermediary. Because financial intermediaries can track customers' uses of money more easily than Latasha can and take action quickly in cases where borrowers use the money irresponsibly, this is an example of how financial intermediaries can help solve the problem of:

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Suppose Latasha comes into a large sum of money and decides to lend it out to earn interest on it. S...
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