What are transactions costs and what are information costs

Reference no: EM131305156

1. Why do savers with small amounts to invest rarely make loans directly to individuals or firms?

2. What are transactions costs? What are information costs?

3. What are financial intermediaries? Why are financial intermediaries important to the financial system?

4. What are economies of scale? What role do economies of scale play in helping financial intermediaries to reduce transactions costs?

Reference no: EM131305156

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