In this paperwork of ECO 316 Week 2 Chapter 11 Reducing Transactions Costs and Information Costs you will find the answers on the next questions: 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 Show More
