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Business, 25.02.2020 18:15 romaguera06

Gustavo is a young doctor who lives in a country with a relatively inefficient legal and financial system. When Gustavo applied for a mortgage, he found that banks usually required collateral for up to 300% of the amount of the loan.
Explain why banks might require that much collateral in such a financial system. Comment on the consequences of such a system for economic growth.

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