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.