The Two Ways Financial Intermediaries Can Reduce Transactions Costs Are

question 96

Multiple Choice

The two ways financial intermediaries can reduce transactions costs are ________ and ________.

• A) economies of scale; expertise
• B) moral hazard; adverse selection
• C) direct finance; indirect finance
• D) stocks; bonds

---

Definitions:

Water Molecules

The smallest unit of water, consisting of two hydrogen atoms bonded to one oxygen atom, essential for life's processes.

Vascular Bundles

Structures in plants that contain xylem and phloem tissues, responsible for the transport of water, nutrients, and sugars.

Monocot

Refers to monocotyledons, a group of flowering plants that possess one embryonic leaf or cotyledon in their seeds.

Epidermis

The outermost layer of cells in plants and animals, serving as a protective barrier against environmental damage.