The Fact That Financial Intermediaries Employ Experts to Carry Out

question 95

Multiple Choice

The fact that financial intermediaries employ experts to carry out particular activities and so lower transactions costs is usually associated with the following economic concept:

• A)The law of demand
• B)Economies of scale
• C)Comparative advantage
• D)Information costs

---

Definitions:

Legitimate Source

A credible or reliable source of information that is recognized for its authenticity and accuracy.

Overdrawn

The condition of having withdrawn more money from a bank account than is available, often resulting in penalties.

Wise Decision

A choice made after careful consideration of various factors, reflecting deep understanding and prudent judgment.

Penalty Fee

A financial charge imposed on an individual or organization for not adhering to a contract, rule, or regulation.