Answer:
peer lending
Explanation:
With microfinance, the mechanism of ________ is a way to avoid the problem of imperfect information. A) requiring no collateral B) peer lending C) making only small loans D) accepting savings deposits
Imperfect information is when parties to a transaction do not have the same amount of information.
Peer lending is when a borrower is matched with a lender. Information about the borrower is disclosed to the lender. Such information includes :
personal credit quality
this helps to reduce imperfect information
