The transaction cost of trading of financial instruments in centralized market is classified as ____________?
Correct answer: B. low transaction costs
- A. flexible costs
- B. low transaction costs
- C. high transaction costs
- D. constant costs
Explanation
Centralized markets generally reduce search, negotiation and settlement costs by bringing trading into an organized venue. Consequently, their transaction costs are typically low rather than high or constant.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The type of financial security which have linked payoff to another issued security is classified as ___________?
The depository institutions such as thrifts include _____________?
The example of derivative securities include ______________?
In financial transactions, the risk that there will be no profit in selling of this asset is classified as _____________?
The federal funds, bankers acceptance, commercial paper and repurchase agreements are classified as ____________?
The major liabilities of the commercial banks are ___________?