The Reduction in Transactions Costs Brought About by Financial Intermediaries

question 29

Multiple Choice

The reduction in transactions costs brought about by financial intermediaries benefits

• A)small savers, but not small borrowers.
• B)small borrowers, but not small savers.
• C)both small savers and small borrowers.
• D)society through greater economic efficiency; small savers and borrowers do not gain directly.

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Definitions:

Sales Revenue

The income received by a company from its sales of goods or the provision of services, before any expenses are subtracted.

Net Sales

The amount of revenue generated from sales activities after returns, allowances, and discounts have been subtracted.

Operating Expenses

Operating expenses are the costs associated with running a business’s core activities on a day-to-day basis, excluding the cost of goods sold.

Sales Revenue

The total amount earned by a company from its sales of goods or services, before any deductions for returned goods and allowances.