$\backslash$Madeline Shay Remm

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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 $$20,000$ in student loans to pay your tuition and fees. You intend to repay this loan over time after you graduate. Othe A bank helps solve this problem by $$ providing payment services. $$ creating long$-$term loans from short$-$term deposits. $$ spreading the risk of lending money across many borrowers. $$ eliminating information problems. $$ pooling savings from many savers. $$ b$.$ You are starting a business in a new industry and need $$300$ million for your initial investment. Of course, few individual savers would be willing or able to make such a loan. a N A bank helps solve this problem by

A bank helps solve this problem by $$ providing payment services. $$creating long$-$term loans from short$-$term deposits. $$ eliminating information problems. $$ pooling savings from many savers. $$ spreading the risk of lending money across many borrowers. D M Resources Al Tutor $$ X $+$ Submit Answer $$ Other favorites c$.$ You need $$15,000$ to purchase a new car. No one who knows you personally has the money to lend. A bank helps solve this problem vy $$ providing payment services. $$ creating long$-$term loans from short$-$term deposits. eliminating information problems. spreading the risk of lending money across many borrowers. $$ pooling savings from many savers.

d$.$ You want to be able to pay your bills online instead of paying for everything using cash. $$ Q L A bank helps solve this problem by $$ creating long$-$term loans from short$-$term deposits. $$ pooling savings from many savers. $$ spreading the risk of lending money across many borrowers. $$ eliminating information problems. $$ providing payment services.