Asymmetric information arises

A$.$

because the borrower has far more information than the lender about their own creditworthiness.

B$.$

because the lender has far more information than the borrower about their own creditworthiness.

C$.$

when after securing a$$ loan, borrowers behave in a way that is likely to cause them to default on the loan.

D$.$

when after making a$$ loan, lenders behave in a way that is likely to cause them to default on the loan.

Part $3$

How do banks facilitate the flow of funds from savers to borrowers by reducing transactions costs and asymmetric$$ information?