Why are banks important to producers?
A.
Bank loans allow more people to buy products and homes.
B.
Savings accounts allow a way to make interest off profits.
C.
Checking accounts give a way to take payments from customers.
D.
Credit cards give producers low-interest loans of small amounts.
The answer is A. Bank loans allow more people to buy products and homes.
Banks are important to producers for various reasons, but one key reason is that they provide loans to individuals, which enables them to purchase products and homes. When people have access to bank loans, they are more likely to have the financial means to buy goods and services produced by companies. This, in turn, helps stimulate economic growth and increases demand for products.
To get to this answer, you can eliminate options B, C, and D as they either don't directly relate to the role of banks for producers or offer a different function. Option B is partially accurate since savings accounts can help producers earn interest on profits, but it is not the primary reason why banks are important to producers. Therefore, the correct answer is A.