How can economies of scale help explain the existence of financial intermediaries?
Question
How can economies of scale help explain the existence of financial intermediaries?
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Solution 1
Economies of scale can help explain the existence of financial intermediaries in several ways:
- Lower Transaction Costs: Financial intermediaries can conduct transactions on a large scale more efficiently than individuals, which reduces the cost per transaction. This is because they have the reso Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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