Financial Intermediaries Reduce Transactions Costs by

question 3

Multiple Choice

Financial intermediaries reduce transactions costs by

• A)charging fees to small savers.
• B)charging fees to small investors.
• C)taking advantage of economies of scale.
• D)avoiding risky investments.

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Definitions:

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of the linear relationship between two variables on a scatter plot.

Wet Mount

A technique for preparing specimens on a microscope slide using a drop of liquid to keep the sample alive or to enhance optical properties.

Iris Diaphragm

A component of optical devices, such as microscopes and cameras, that can adjust the size of the aperture to control the amount of light that passes through the lens.

Oil Immersion

A technique used in microscopy where an oil with a refractive index close to that of glass is placed between the specimen and the objective lens to increase resolution.