Financial intermediaries are able to exploit economies of scale since
A)the equipment or expertise necessary for one transaction can be applied to other transactions.
B)they have special licenses needed to perform financial transactions.
C)financial markets fail to do so.
D)they can reduce transactions cost, but not information costs.

Question

Quizplus · Accepted Answer

Financial intermediaries are able to exploit economies of scale since they can apply the necessary equipment or expertise for one transaction to other transactions as well, thereby reducing costs and increasing efficiency.

Financial Intermediaries Are Able to Exploit Economies of Scale Since