The Marginal Cost of Financial Transactions Rises with the Volume

question 55

Multiple Choice

The marginal cost of financial transactions rises with the volume of financial transactions due to

• A)congestion.
• B)power failure.
• C)bank failure.
• D)reserve requirements.
• E)perceived instability of banks.

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Definitions:

Memory Chips

Electronic components that store digital data, used in various computing devices for temporary or permanent data storage.

Quantity Discount

A reduction in price offered to a buyer when purchasing goods in larger quantities, serving as an incentive for bulk purchases.

Carrying Cost

The total cost of holding a particular asset on a company’s books, which can include storage, interest, depreciation, and insurance.

Distilled Water

Distilled water is water that has been purified through distillation, a process that involves boiling the water and then condensing the steam back into liquid.