Financial institutions
A) reduce information costs, set interest rates for bonds, and diversify assets.
B) reduce information costs, reduce transaction costs, and diversify assets.
C) pool funds from lenders, reduce transaction costs, and diversify assets.
D) reduce information costs, reduce transaction costs, and pool funds from lenders.

Question

Quizplus · Accepted Answer

Financial institutions primarily reduce information costs, reduce transaction costs, and diversify assets, making them more efficient in managing funds and providing financial services.

Financial Institutions