(I)The Total Cost of Carrying Out a Transaction in Financial

question 2

Multiple Choice

(I) The total cost of carrying out a transaction in financial markets increases proportionally with the size of the transaction.
(II) Financial intermediaries facilitate diversification when an investor has only a small sum to invest.

• A) (I) is true; (II) false.
• B) (I) is false; (II) true.
• C) Both (I) and (II) are true.
• D) Both (I) and (II) are false.

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Definitions:

Dyadic Withdrawal

The process of increasing reliance on one person for gratification and decreasing reliance on others.

Norm of Homogamy

The social expectation that individuals tend to select romantic partners who are similar to themselves in characteristics such as socio-economic status, beliefs, or ethnicity.

Norm of Ageism

A societal norm that entails prejudiced attitudes and discriminatory actions based on a person's age, often targeting the elderly.

Matching Hypothesis

The hypothesis that each person looks for someone to date who is of approximately the same level of social desirability.