For each situation, consider why seeking out an individual saver to borrow money from is not ideal. Then, identify which function of banks eliminates the problem.

a$.$ As a first$-$year student, you need to take out $$20,000$ in student loans to pay your tuition and fees. You intend to repay this loan over time after you graduate.

A bank helps solve this problem by

spreading the risk of lending money across many borrowers.

eliminating information problems.

providing payment services.

pooling savings from many savers.

creating long$-$term loans from short$-$term deposits.

You are starting a business in a new industry and need $$300$ million for your initial investment. Of course, few individual avers would be willing or able to make such a loan.