Which of the Following Will Tend to Increase Transaction Costs

question 11

Multiple Choice

Which of the following will tend to increase transaction costs?

• A) Buying or selling fewer than 100 shares at a time.
• B) Buying or selling shares through an on-line broker.
• C) Buying or selling more than 1000 shares in a single trade.
• D) Buying or selling at times when volume is high and the exchanges are busy.

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Definitions:

Operant Conditioning

A learning process in which the strength of a behavior is modified by its consequences, such as reward or punishment.

Extinction

Within the field of psychology, a conditioned response gradually fades and ultimately vanishes.

Unconditioned Stimulus

Within the framework of classical conditioning, a stimulus inherently and spontaneously elicits a reaction without the necessity of prior learning.

Negative Punishment

A form of behavioral control that involves the removal of a desirable stimulus following a behavior to decrease the likelihood of that behavior occurring again.