Transaction Cost of Trading of Financial Instruments in Centralized Market

question 14

Multiple Choice

Transaction cost of trading of financial instruments in centralized market is classified as

• A)flexible costs
• B)low transaction costs
• C)high transaction costs
• D)constant costs

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Definitions:

Minimum Required Rate

The lowest acceptable rate of return on an investment demanded by an investor, considering risk factors.

Net Operating Income

The profit generated from a company's everyday operations, excluding income from investments and extraordinary items.

Operating Assets

Assets used by a business in its operational activities to generate revenue, excluding investment and non-operational assets.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate revenue, such as machinery, buildings, and equipment.