Financial Intermediaries Can Substantially Reduce Transaction Costs Per Dollar of Transactions

question 45

Multiple Choice

Financial intermediaries can substantially reduce transaction costs per dollar of transactions because their large size allows them to take advantage of

• A) poorly informed consumers.
• B) standardization.
• C) economies of scale.
• D) their market power.

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Definitions:

Sympathy

Feelings of pity and sorrow for someone else's misfortune, showing an understanding and compassion for others' experiences.

Big Five Personality Dimensions

A model proposing five broad dimensions to describe human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Disagreeableness

A personality trait characterized by a tendency towards being critical, antagonistic, and uncooperative in social settings.

Hostile Attribution Bias

The tendency to see others as hostile and aggressive.