Financial Intermediaries Are Able to Exploit Economies of Scale Since

question 22

Multiple Choice

Financial intermediaries are able to exploit economies of scale since

• A)the equipment or expertise necessary for one transaction can be applied to other transactions.
• B)they have special licenses needed to perform financial transactions.
• C)financial markets fail to do so.
• D)they can reduce transactions cost, but not information costs.

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Definitions:

Hypothalamus

A region of the brain below the thalamus, coordinating both the autonomic nervous system and the activity of the pituitary, controlling body temperature, hunger, thirst, and other processes that regulate body equilibrium.

Hunger Signals

Physiological cues sent by the body to indicate the need for food intake, involving hormones, the central nervous system, and other bodily mechanisms.

Satiety Signals

Internal biological signals sent by the body to indicate fullness and control food intake.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells, through electrical and chemical signals.