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Which of These Statements Is Most True of the Function

Question 1

Multiple Choice

Which of these statements is most true of the function of banks?


A) Banks are a safe way to save, and savers earn high interest.
B) Banks lend money and help with the problem of symmetric information.
C) Banks play a key role in creating money, and they help with the problem of adverse selection.
D) Banks lend money and help with the problem of free-riders.

Correct Answer:

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