By reducing transactions and information costs,financial intermediaries can
A) offer savers higher interest rates.
B) offer borrowers lower interest rates.
C) earn a profit.
D) all of the above.

Question

Quizplus · Accepted Answer

By reducing transactions and information costs, financial intermediaries are able to offer more competitive interest rates to both savers and borrowers, while still earning a profit from their services. This is because they are able to operate more efficiently and reduce the overall costs of these transactions. Therefore, all of the choices offered are correct.

By Reducing Transactions and Information Costs,financial Intermediaries Can