Increasing transactions costs of selling an asset make the asset
A)more valuable.
B)more liquid.
C)less liquid.
D)more moneylike.

Question

Quizplus · Accepted Answer

Higher transaction costs make it more difficult and expensive to sell an asset, reducing its liquidity. Thus, option C is the correct answer. Options A and D are incorrect as higher transaction costs do not directly affect the actual value or money-like nature of the asset. Option B is also incorrect since higher transaction costs do not improve the asset's liquidity.

Increasing Transactions Costs of Selling an Asset Make the Asset