How are financial intermediaries able to reduce transactions costs?
What will be an ideal response?
Financial intermediaries are able to take advantage of economies of scale, which refers to the reduction in average cost that results from an increase in the volume of a good or service produced.
You might also like to view...
Explain the differences between commodity money, representative commodity money, and partially backed representative commodity money
What will be an ideal response?
Every society must follow some kinds of criteria to determine who gets what. Examples of such criteria include
A) age. B) gender. C) height. D) willingness to pay. E) all of the above.
If President Obama wanted to decrease aggregate demand, which of the following would he tend to favor?
a. An increase in government spending, because it will increase the size of the public sector. b. A decrease in government spending, because it keeps the public sector small. c. An increase in transfer payments, because it has a larger multiplier than tax changes. d. An increase in taxes, because it would not make the public sector smaller.
If Juana contracts to buy U.S. office equipment in U.S. dollars and her domestic currency depreciates against the U.S. dollar between the time the contract is signed and the bill is paid, she will wind up paying less for the equipment because she stayed in the spot market
Indicate whether the statement is true or false