Which of These Statements Is Most True of the Function

question 21

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.

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Definitions:

Fred Griffith

A British bacteriologist whose experiments in 1928 demonstrated the principle of bacterial transformation, an essential discovery that paved the way for understanding DNA as the material of heredity.

Pneumonia

A respiratory condition marked by infection of the lungs, leading to symptoms like coughing, fever, and difficulty breathing.

Bacteria

Microscopic single-celled organisms that can be found in diverse environments; some cause disease while others are beneficial.

DNA Replication

The biological process of producing two identical replicas of DNA from one original DNA molecule, critical for cell division and growth.