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(I)The Total Cost of Carrying Out a Transaction in Financial

Question 1

Multiple Choice
(I)The total cost of carrying out a transaction in financial markets increases proportionally with the size of the transaction.
(II)Financial intermediaries facilitate diversification when an investor has only a small sum to invest.
A) (I) is true; (II) false.
B) (I) is false; (II) true.
C) Both (I) and (II) are true.
D) Both (I) and (II) are false.

(I) The total cost of carrying out a transaction in financial markets increases proportionally with the size of the transaction.
(II) Financial intermediaries facilitate diversification when an investor has only a small sum to invest.


A) (I) is true; (II) false.
B) (I) is false; (II) true.
C) Both (I) and (II) are true.
D) Both (I) and (II) are false.

Correct Answer:

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