What are the information costs faced by savers?

What will be an ideal response?


Information costs are the costs that savers incur to determine the creditworthiness of borrowers and to monitor how they use the acquired funds.

Economics

You might also like to view...

Income taxes are taxes paid on wages and investment income

Indicate whether the statement is true or false

Economics

Suppose the market-clearing price of wheat is $2.50 per bushel. At a price above $2.50,

A) supply would equal demand. B) quantity supplied would equal quantity demanded. C) quantity supplied would exceed quantity demanded. D) quantity supplied would be less than quantity demanded.

Economics

Suppose that the demand for labor decreases due to an economic downturn, and union workers are in the first year of a 3-year labor contract

With respect to these union laborers, the economic downturn will most likely ________ the nominal wage and ________ the quantity of labor hired. A) decrease; not change B) decrease; decrease C) not change; decrease D) not change; not change

Economics

Since last year, the price of gold has risen from $1100 to $1420. What annual inflation rate would leave the real price of gold unchanged over the last twelve months?

A) Approximately 29% B) 40% C) Approximately 71% D) 320% E) none of the above

Economics