How do financial institutions evaluate the creditworthiness of potential borrowers?
A. They do not evaluate creditworthiness because everyone is treated the same.
B. They offer high interest rates because only the best borrowers will be able to afford them.
C. They do not evaluate the creditworthiness because they know the borrower will honor his/her obligation to repay the loan.
D. They gather information regarding the borrowers' finances.
Answer: D
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