The Presence of Transaction Costs in Financial Markets Explains,in Part,why

question 35

Multiple Choice

The presence of transaction costs in financial markets explains,in part,why

• A) financial intermediaries and indirect finance play such an important role in financial markets.
• B) equity and bond financing play such an important role in financial markets.
• C) corporations get more funds through equity financing than they get from financial intermediaries.
• D) direct financing is more important than indirect financing as a source of funds.

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