Answers to Questions_C08.pptVIP

Chapter 8 An Economic Analysis of Financial Structure Answers to End-of-Chapter Questions 本章末复习题参考答案 Answers to End-of-Chapter Questions本章末问题参考答案 1. Financial intermediaries can take advantage of economies of scale and thus lower transactions costs. For example, mutual funds take advantage of lower commissions because the scale of their purchases is higher than for an individual, while banks’ large scale allows them to keep legal and computing costs per transaction low. Economies of scale which help financial intermediaries lower transactions costs explains why financial intermediaries exi