the process of pawning and how it benefits both people
In: Economics
If you want to borrow money in a hurry, the pawn shop gives you a loan, you give them some item of value to hold on to. If you pay back the loan with the agreed upon interest, they give you your item back. If you don’t, they keep your item and can sell it to recover their money. If you pay it back, it benefits both people because they lent you money when you wanted it (fast), and they get paid some interest in exchange for that service.
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