The Presence of Transactions Costs and Information Costs

question 63

Multiple Choice

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.

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Definitions:

Initiative

The ability to assess and initiate actions independently, often leading to innovation or problem-solving.

Flat Structure

An organization structure that has wide spans of control and few hierarchical levels.

Decision Making

The process of selecting a course of action from several alternatives to achieve a desired outcome.

Levels of Management

The hierarchical layers of authority in an organization, typically ranging from top management to middle management to lower management.