ECS3701 Assignment 2 Semester 1 &
2 2021
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ECS3701
ASSIGNMENT 2 SEMESTER 1 & 2 2021
UNIQUE NUMBER: 626172
DISCLAIMER: Extreme care has been used to create this document, however the contents are provided “as is” without any
representations or warranties, express or implied. This document is to be used for comparison, research and reference
purposes ONLY. Directly submitting and/or reselling/ distribution / reproduction any part of this document is not permitted.
PREVIEW OF QUESTION 1
Discuss how collateral and indirect finance are used in explaining the basic facts aboutfinancial
structure around the world.
Collateral is a prevalent feature of debt contracts for both households and businesses. Collateral is property that
is pledged to a lender to guarantee payment in the event that the borrower is unable to make debt payments.
Collateralized debt (also known as secured debt to contrast it with unsecured debt, such as credit card debt,
which is not collateralized) is the predominant form of household debt and is widely used in business borrowing
as well.
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Downloaded by: lilliem637 |
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2 2021
written by
StudyPortal
www.stuvia.com
This study source was downloaded by 100000842939863 from CourseHero.com on 03-07-2022 17:54:23 GMT -06:00
Downloaded by: lilliem637 |
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ECS3701
ASSIGNMENT 2 SEMESTER 1 & 2 2021
UNIQUE NUMBER: 626172
DISCLAIMER: Extreme care has been used to create this document, however the contents are provided “as is” without any
representations or warranties, express or implied. This document is to be used for comparison, research and reference
purposes ONLY. Directly submitting and/or reselling/ distribution / reproduction any part of this document is not permitted.
PREVIEW OF QUESTION 1
Discuss how collateral and indirect finance are used in explaining the basic facts aboutfinancial
structure around the world.
Collateral is a prevalent feature of debt contracts for both households and businesses. Collateral is property that
is pledged to a lender to guarantee payment in the event that the borrower is unable to make debt payments.
Collateralized debt (also known as secured debt to contrast it with unsecured debt, such as credit card debt,
which is not collateralized) is the predominant form of household debt and is widely used in business borrowing
as well.
This study source was downloaded by 100000842939863 from CourseHero.com on 03-07-2022 17:54:23 GMT -06:00
Downloaded by: lilliem637 |
Distribution of this document is illegal
https://www.coursehero.com/file/101655673/Stuvia-1064147-ecs3701-assignment-2-semester-1-en-2-2021pdf/
