Which Function of an FI Reduces Transaction and Information Costs

question 5

Multiple Choice

Which function of an FI reduces transaction and information costs between a corporation and individual which may encourage a higher rate of savings?

• A)Brokerage services.
• B)Asset transformation services.
• C)Information production services.
• D)Money supply management.

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Definitions:

Internationalized

The process of designing products, services, or operations to facilitate operation or distribution in multiple countries.

Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues over a specified period.

Trade Balance

The gap between a nation's foreign sales and purchases, encompassing both goods and services.

Net Capital Outflow

The difference between a country's total exports of capital and total imports of capital during a specific time period.