Question: is an issue that occurs when people who do not pay for information take advantage of the information that other people have paid for. Banks
is an issue that occurs when people who do not pay for information take advantage of the information that other people have paid for.
Banks reduce the freerider problem in information production by
A buying tradable securities with their depositors' funds.
B serving as an intermediary that holds mostly nontraded loans.
C making public, traded loans so other lenders can benefit from the inforr collected about the borrower.
D charging others for information about the financial condition of potential borrowers.
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