Financial Intermediaries, Through Their Ability to Lower Transaction Costs

question 96

Multiple Choice

Financial intermediaries, through their ability to lower transaction costs:

• A) allow for people to be more self-sufficient.
• B) increase the amount of trading that occurs in an economy.
• C) take people away from their comparative advantage.
• D) reduce the number of financial transactions that occur.

---

Definitions:

Schema's Tendency

The propensity of cognitive schemas, which are frameworks for understanding the world, to influence perception and memory in a consistent direction.

Salience

The quality of being particularly noticeable or important; something that stands out in a person's perception or attention.

Priming

The psychological phenomenon where exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.

Coloring Perception

The phenomenon where one's prejudices, emotions, or experiences influence how they interpret and understand their environment.