A further complication is introduced by the inappropriateness of fixed money loans to finance investment in training

Such an investment necessarily involves much risk. The average expected return may be high, but there is wide variation about the average. Death or physical incapacity is one obvious source of variation but is probably much less important than differences in ability, energy, and good fortune. In order to make such loans attractive to lenders, the nominal interest rate charged on all https://cashadvancecompass.com/personal-loans-or/oakland/ loans would have to be sufficiently high to compensate for the capital losses on the defaulted loans.