Banks help savers find productive uses for their funds because banks have specialized in:

Question

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Banks have developed expertise in evaluating potential borrowers through their credit analysis and underwriting departments. By gathering information about potential borrowers and assessing their creditworthiness, banks are able to identify which borrowers are most likely to repay the loan and use the funds productively. This allows banks to direct savers' funds to borrowers who are more likely to generate a return on investment, which benefits both the borrower and the saver.

Banks Help Savers Find Productive Uses for Their Funds Because