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Why do lenders use security margins when assessing collateral? a. To ensure the borrowers will...

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Question

Finance

Why do lenders use security margins when assessing collateral?

a.

To ensure the borrowers will behave ethically.

b.

To make more money.

c.

To protect themselves against falling asset values in the future.

d.

Because they need to make the lending process look more complicated.

e.

None of these choices are correct

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