Which of the following statements is true about transaction costs in issuing debt securities when comparing banks and nonfinancial corporations?

Question

Quizplus · Accepted Answer

Nonfinancial corporations typically face higher transaction costs when issuing debt securities compared to banks. This is due to several factors, including the perceived risk by investors, the scale of issuance, and the frequency of access to debt markets, which tend to be more favorable for banks.

Which of the Following Statements Is True About Transaction Costs