Automated Teller Machines Provided by Financial Intermediaries Are an Example

question 108

Multiple Choice

Automated teller machines provided by financial intermediaries are an example of:

• A) high transactions costs associated with financial intermediaries.
• B) diseconomies of scale.
• C) the ability of financial intermediaries to provide liquidity.
• D) the ability of financial intermediaries to earn profits by raising transaction costs above the norm.

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Definitions:

GDP Deflator

An economic measure of inflation that divides the nominal GDP by the real GDP and multiplies by 100, showing how much prices have changed over a specified time.

Real GDP

The total value of all goods and services produced by a country adjusted for inflation, reflecting the real quantity of goods and services produced.

Percentage Change

A mathematical calculation that describes the degree of change over time, often used to compare the difference between two numbers expressed as a fraction of the initial value.

GDP Deflator

A price index that measures the change in the price level of all new, domestically produced, final goods and services in an economy.