Financial Intermediaries' Ability to Reduce the Average Cost of Collecting

question 23

Multiple Choice

Financial intermediaries' ability to reduce the average cost of collecting information because of their efficient operations allows them to take advantage of

• A)asset transformation.
• B)economies of scale.
• C)economies of scope.
• D)transformational trading.
• E)standardization.

---

Definitions:

Transitive Inference

A logical process where if A relates to B and B relates to C, then A must relate to C, often tested in cognitive psychology.

Cognitive Ability

The capacity to perform various mental activities related to learning, problem-solving, decision-making, and understanding complex ideas.

Shorter

Relating to a length or duration that is less than average or than previously mentioned.

Seriation

A cognitive ability that allows individuals to arrange objects in accordance with a certain criterion, such as size or color.