Aligning the incentives of the agent with those of the principal can lead to lower risks of moral hazard. Discuss how you would align the incentives of a borrower with those of a lender? Provide a specific example to illustrate your ideas.

Aligning the incentives of the agent with those of the principal can lead to lower risks of moral hazard. Discuss how you would align the incentives of a borrower with those of a lender? Provide a specific example to illustrate your ideas.

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