Small savers face
A)high transactions costs in financial markets.
B)low transactions costs in financial markets.
C)high transactions costs in financial intermediaries.
D)high information costs in financial intermediaries.

Question

Quizplus · Accepted Answer

Small savers usually have limited resources, and therefore, they face high transactions costs in financial markets. These costs may include brokerage fees, taxes, and other administrative expenses associated with buying and selling financial instruments. As a result, small savers may find it difficult to invest their savings in a cost-effective manner, which can limit their ability to build wealth over time.

Small Savers Face