The Reduction in Transactions Costs Per Dollar of Investment as the Size

question 65

Multiple Choice

The reduction in transactions costs per dollar of investment as the size of transactions increases is

• A)discounting.
• B)economies of scale.
• C)economies of trade.
• D)diversification.

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Definitions:

Lenders

Individuals, institutions, or entities that provide financial resources to borrowers under agreed terms for repayment with interest.

Inflation

The tempo with which the broad level of prices for services and goods lifts, diminishing the power of purchase.

Real Value

The value of an object, service, or currency adjusted for inflation, representing its purchasing power.

Nominal Dollars

Nominal dollars refer to the amount of money expressed in current values, without adjustment for inflation, representing the "face value" of currency.