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:

Convergent Validity

The extent to which different tests or measures that purport to assess the same construct actually yield similar results.

Extraversion Scales

Tools or tests designed to measure the level of extraversion in an individual, typically indicating how outgoing, sociable, and energetic they are.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the mean.

Score

A quantitative expression of the outcome from an evaluation, test, or assessment, representing the level of performance or achievement.