Transaction costs are best defined as
A)costs associated with checkable deposits.
B)charges associated with making financial assets only.
C)costs associated with borrowing and lending or making other exchanges.
D)charges from failing to repay a financial claim.

Question

Quizplus · Accepted Answer

Transaction costs are the costs associated with making economic transactions, including borrowing, lending or making other exchanges. These costs can include broker fees, legal fees, and administrative costs of negotiating and conducting the transaction. A and B are incorrect because they do not accurately describe transaction costs. D is incorrect because the question is asking about transaction costs, not penalties for failing to repay a financial claim.

Transaction Costs Are Best Defined as