What Are the Three Key Features of the Financial System

question 106

Essay

What are the three key features of the financial system that result from the existence of transactions and information costs?

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Definitions:

Excitation

The process of causing a neuron or muscle cell to become more active or aroused.

Resting Potential

The electrical charge across a neuron's plasma membrane when the neuron is not actively sending a signal, serving as the basis of potential neural activation.

Axons

Long, slender projections of nerve cells, or neurons, that transmit electrical impulses away from the neuron's body to other neurons, muscles, or glands.

Action Potentials

Electrical impulses that neurons generate to transmit information throughout the nervous system.