Final answer:
The potential problem in lending 10 million VND when borrowers need different amounts is matching the loan size to each borrower's needs, similar to a company issuing bonds for varying investor amounts. The risk includes the possibility of not being repaid in full if borrowers default. Solutions could involve dividing the total loan into smaller portions, reflecting a strategy used by companies when issuing bonds.
Step-by-step explanation:
If you can lend 10 million VND but borrowers need different amounts, the potential problem is that it may be challenging to find a single borrower who needs the exact amount you're offering. This situation is like how large companies issue bonds to raise capital. A company might want to raise 50 million VND by issuing multiple bonds of 5,000 VND each, allowing investors to lend smaller amounts that add up to the total required capital. This illustrates a scenario where a total loan amount is divided into smaller, manageable portions for multiple lenders or borrowers to facilitate the capital-raising process. Like the advantages of resource pooling or shared tool lending arrangements, multiple borrowers could benefit from your 10 million VND if it's divided into portions matching their needs, but managing this might be complex.
The primary risk in lending is that there's no guarantee that the borrowers will repay the loan, which applies to bonds as well. If borrowers default, they may be taken to court, but if they lack sufficient assets, lenders may only recoup a portion of the loaned amount. In contrast, pooling resources in a community can have advantages, like cost savings and fostering community ties, though it might also lead to disagreements or mismanagement of the shared resources.
The concept of the money multiplier effect, where the total quantity of money in an economy increases through lending, also comes into play when considering the circulation and availability of funds among multiple borrowers.