Interest on Loans Is an Example of a Transactions Cost

question 8

True/False

Interest on loans is an example of a transactions cost that intermediaries can deal with more efficiently than individuals.

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Definitions:

Property Rights

The legal rights to own, use, and dispose of assets including real property and intellectual property.

Purchaser

An individual or entity that buys goods or services for personal use, commercial use, or resale.

Industry Canada

A department of the Canadian government formerly responsible for economic development, innovation, and scientific research, now part of Innovation, Science and Economic Development Canada.

Department of Industry Act

Legislation that establishes and defines the powers, responsibilities, and organization of a country's Department of Industry or similar entity.