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:

Prospective Memory Processes

Cognitive processes involving the ability to remember to perform an intended action in the future, such as remembering to take medication at a certain time.

Schema-based Recall

The process of remembering information by relating it to an already existing cognitive framework or schema.

Episodic Memory

The type of memory that involves the recollection of specific events, situations, and experiences from one's life.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, and general facts that are not tied to specific experiences.