Financial Intermediaries Reduce Transactions Costs by

question 3

Multiple Choice

Financial intermediaries reduce transactions costs by

• A)charging fees to small savers.
• B)charging fees to small investors.
• C)taking advantage of economies of scale.
• D)avoiding risky investments.

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Definitions:

Cognitive-Mediational Theories

Cognitive-mediational theories suggest that cognitive processes—like thoughts and interpretations of events—mediate between the stimulus and the emotional or behavioral response.

Appraisal

The evaluation of the significance of an event or situation for an individual's well-being, which plays a role in determining the emotional response.

Intrinsic Motivation

Motivation driven by an interest or enjoyment in the task itself, rather than relying on external pressures or rewards.

External Rewards

Benefits provided by an external source, often used as motivation in behavior reinforcement, that are not inherently related to the activity being performed.