From the perspective of households and businesses deciding where to deposit their money,the key advantage of the private loans issued by commercial banks is ________.

Question

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Commercial banks have a strong incentive to collect detailed information about their borrowers to assess and manage risk, which is a key advantage for households and businesses when deciding where to deposit their money. This ensures that the banks are making informed decisions on their loans, indirectly benefiting the depositors by contributing to the overall stability and reliability of the bank.

From the Perspective of Households and Businesses Deciding Where to Deposit