Describe two ways in which financial intermediaries help lower transaction costs in aneconomy.

Question

Describe two ways in which financial intermediaries help lower transaction costs in aneconomy.
🧐 Not the exact question you are looking for?Go ask a question

Solution 1

Financial intermediaries play a crucial role in reducing transaction costs in an economy in two main ways:

  1. Economies of Scale: Financial intermediaries, such as banks, can handle large volumes of transactions, which allows them to take advantage of economies of scale. This means that the average Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

This problem has been solved

Similar Questions

Describe two ways in which financial intermediaries help lower transaction costs in aneconomy.

Describe two ways in which financial intermediaries help lower transaction costs in an economy.

How can economies of scale help explain the existence of financial intermediaries?

ow can economies of scale help explain the existence of financial intermediaries?

Describe two ways in which the circulatory system of a fish is different from the circulatorysystem of a mammal

1/3