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Explain the term "Lending Leveling."

Sagot :

GinnyAnswer

Final answer:

Lending Leveling in economics involves spreading risks among lenders in the loanable funds market.


Explanation:

Lending Leveling, in economics, refers to the process where savers lend money to borrowers through credit intermediaries like banks, allowing risks to be pooled and distributed more evenly. This concept helps spread potential losses among lenders rather than concentrating them on a few individuals if borrowers default on loans. Financial intermediaries play a crucial role in transforming savings into investment within the loanable funds market.


Learn more about Lending Leveling in economics here:

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