The Reduction in Transactions Costs Per Dollar of Investment as the Size

question 65

Multiple Choice

The reduction in transactions costs per dollar of investment as the size of transactions increases is

• A)discounting.
• B)economies of scale.
• C)economies of trade.
• D)diversification.

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Definitions:

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The currency of the United Kingdom, used as a medium of exchange within the country and sometimes beyond.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specific period.

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A hedge that is accounted for at fair value, with changes in fair value recognized in earnings, to offset the exposure of an identified risk.