The Reduction in Transactions Costs Brought About by Financial Intermediaries

question 29

Multiple Choice

The reduction in transactions costs brought about by financial intermediaries benefits

• A)small savers, but not small borrowers.
• B)small borrowers, but not small savers.
• C)both small savers and small borrowers.
• D)society through greater economic efficiency; small savers and borrowers do not gain directly.

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Definitions:

High-low Method

A technique used in managerial accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

High-low Method

A technique used in cost accounting to determine the variable and fixed components of a cost by analyzing the highest and lowest activity levels.

R-squared

R-squared is a statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

High-low Method

A technique used in managerial accounting to estimate fixed and variable costs associated with production or business operations based on the highest and lowest levels of activity.