11.1 Multiple Choice Questions
1) Why did one prominent economist state that in the late 1990s "hundreds of billions of dollars were being left on the table" in Eastern Europe?
2) Which of the following was a consequence of the poorly developed financial markets in Eastern Europe in the 1990s?
3) What solution did most financial experts suggest be undertaken in response to the poorly developed financial markets in the 1990s?
4) Transactions costs are
5) Information costs
6) The presence of transactions costs and information costs
7) resence of transactions costs and information costs
8) Which of the following is NOT an example of transactions costs?
9) Small savers face
10) Small savers face
11) Financial intermediaries emerged
12) Transaction and information costs
13) Banks earn a profit by
14) It is generally agreed that
15) Financial intermediaries reduce transactions costs by
16) Economies of scale are
17) Individual investors can reduce transactions costs by
18) Which of the following does NOT represent a way in which financial intermediaries take advantage of economies of scale?
19) Financial intermediaries are able to exploit economies of scale since
20) The reduction in transactions costs brought about by financial intermediaries benefits
21) The assumption of…