A Solution to the High Transaction Costs Is to Bundle

question 109

Multiple Choice

A solution to the high transaction costs is to bundle the funds of many investors so that they can take advantage of ________.

• A) economies of scale
• B) high interest rates
• C) high rates of return
• D) lower risk

---

Definitions:

Reassurance

The act of providing comfort or confidence to someone, often to alleviate fear or anxiety.

Draining Ulceration

A type of ulcer that produces discharge or pus as a result of infection or inflammation.

Wash Hands

The act of cleaning one's hands with soap and water to remove dirt, germs, and other contaminants.

Gloves

Protective gear worn on the hands to prevent contamination and protect against infections and hazardous materials.