If a savings and loan "pools risk," which of the following must it do?
A) lend money to a large number of firms
B) have a large spread between the interest rate it charges borrowers and the interest rate it pays lenders
C) take funds in from a large number of lenders
D) Both answers A and C are correct.

Question

Quizplus · Accepted Answer

To "pool risk," a savings and loan must spread out its lending and borrowing activities to a large number of firms and lenders, which requires taking funds in from a large number of lenders and lending money to a large number of firms.

If a Savings and Loan "Pools Risk," Which of the Following