The presence of transactions costs and information costs

A) lowers the cost of funds to borrowers.
B) raises the expected return to lenders.
C) lowers the expected return to lenders.
D) increases the efficiency of the financial system.


C

Economics

You might also like to view...

A decrease in wealth would shift the:

A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.

Economics

An import quota

A) is a price ceiling imposed on an imported good. B) is a price floor imposed on an imported good. C) is a supply restriction limiting the quantity of a good that can be imported. D) is a legislative requirement stating that firms which import some of their merchandise must hire a certain number of immigrant workers.

Economics

Which of the following is a characteristic of a perfectly competitive market?

A. a large number of firms in a market B. selling a standardized product C. no barriers to entry D. All of these

Economics

The point at which buyers and sellers "agree" on the quantity of a good they are willing to exchange at a given price is called:

A. equilibrium. B. maximization. C. optimization. D. market collapse.

Economics