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In both equally situations, the households can be employed as collateral, this means they may be seized ought to possibly borrower default. To recoup expenditures when the borrowers default, the monetary institutions can make an effort to sell the residences and utilize the sale selling price to pay down the linked debt.

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Gain – the sum of money an organization is making soon after paying out out all of its expenses and accounting for things such as depreciation. Revenue – the sum of money a company is earning right before taking into account charges.

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