The Presence of Transactions Costs and Information Costs

question 45

Multiple Choice

The presence of transactions costs and information costs

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

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Definitions:

Passions

Strong and barely controllable emotions or desires.

Commitment To God

A deeply personal or communal pledge or devotion to a deity or divine being as part of a religious faith.

Functionalists

Supporters of a theory in sociology and anthropology that interprets society as a structure with interrelated parts designed to meet the biological and social needs of individuals that make up that society.

Mental States

Mental States refer to the conditions of mind or consciousness, including thoughts, feelings, beliefs, and attitudes.