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1. Before the modern banking era, small lenders were the dominant type of money lenders in an economy. Provide brief discussions on the comparative disadvantage

 

1. Before the modern banking era, small lenders were the dominant type of money lenders in an economy. Provide brief discussions on the comparative disadvantage faced by these lenders in comparison to modern banks. 


2. How do modern banks overcome the shortcomings faced by smaller lenders above?

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