Problem
Gustavo is a young doctor who lives in a country with a relatively inefficient legal system and (probably as a consequence of it) an inefficient financial system. When Gustavo applied for a mortgage, he found that banks (he visited many) usually required collateral for up to 300% of the amount of the loan. Explain why banks might require that much property as collateral in such a financial system. Comment on the consequences of such a system for economic growth.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.