Anthony Newton wants to buy a new sail boat. He is planning on making a $9,000 cash down payment, which is a large portion of the cost of what he is financing. In which way is Anthony reducing his lender's risk

Respuesta :

A good way that Anthony is reducing his lenders risk is the fact that he is taking a larger stake in the asset he is purchasing.

What is the lenders risk?

This is the risks that borrowers or people that go to financial agencies face when they collect loans and are unable to repay it or meet the loans obligations.

The risk here is being reduced by Anthony given the fact that he has a larger stake in this loan.

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