Which Function of an FI Reduces Transaction and Information Costs

question 99

Multiple Choice

Which function of an FI reduces transaction and information costs between a corporation and individual which may encourage a higher rate of savings?

• A)Brokerage services.
• B)Asset transformation services.
• C)Information production services.
• D)Money supply management.
• E)Administration of the payments mechanism.

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Definitions:

Specialized Areas

Specific segments or fields that focus on a particular aspect of knowledge or activity, requiring advanced skills or knowledge.

Savant Performance

Exceptional abilities in a specific area, such as arithmetic or memory, often noted in individuals with autism or other developmental disorders.

Criterion-Related Validity

The extent to which a test's scores actually predict or correlate with a specific criterion of interest.

Predictive Reliability

The degree to which a measure or test consistently and accurately predicts future outcomes or behaviors.