Transaction Costs of Taking a Short Position Exceed Those of a Long

question 17

Multiple Choice

Transaction costs of taking a short position exceed those of a long position by:

• A) About 40 \%
• B) About 15\%
• C) About 2-3\%
• D) About 4-5 \%

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Definitions:

Variable Cost

Costs that vary directly with the level of production or service activity.

Decentralisation

The distribution of decision-making powers from central authority to lower-level employees or divisions in an organization.

Goal Congruence

A condition in which the goals of the company's various employees and departments align with the overall objectives of the organization.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job or subject.