Which Function of an FI Reduces Transaction and Information Costs

question 45

Multiple Choice

Which function of an FI reduces transaction and information costs between a corporation and an individual and 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:

Goal Difficulty

The level of challenge involved in achieving a specific objective.

Goal Agreement

The alignment of objectives among team members or within an organization.

Management by Objectives

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.

Subordinates

Individuals who are lower in rank or position within an organizational hierarchy and are subject to the authority of supervisors or managers.