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.
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Solution 1
Financial intermediaries play a crucial role in reducing transaction costs in an economy in two main ways:
- 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.
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