Which of the following is NOT a reason that people tend to deposit their funds with banks rather than lend their funds directly to other individuals?

Question

Quizplus · Accepted Answer

Depositing funds with banks provides individuals with easier access to their money and greater liquidity than if they were to lend directly to other individuals. Therefore, liquidity problems are not a reason why individuals tend to deposit funds with banks. Adverse selection, asymmetric information, and moral hazard problems are all potential challenges that borrowers may face when lending directly to individuals, which can make lending riskier and less attractive than depositing funds with a bank.

Which of the Following Is NOT a Reason That People