The Reduction in Transaction Costs Provided by Financial Intermediaries Benefit

question 109

Multiple Choice

The reduction in transaction costs provided by financial intermediaries benefit:

• A) small borrowers and small savers.
• B) large borrowers but not small savers.
• C) society in the net, but small savers bear much of the cost.
• D) small borrowers but not small savers.

---

Definitions:

Direct Materials

Raw materials directly traced and included in the finished product.

Master Budget

A comprehensive financial plan that consolidates various detailed budgets within a company for a specific period.

Production Budget

A financial plan that estimates the number of units that must be produced within a specific time period to meet expected sales demand and inventory levels.

Sales Budget

A sales budget is an estimated amount of revenue that a company expects to earn from sales over a specific period.