Banks lower the cost of finding a lender or borrower. These costs are …

Question

Banks lower the cost of finding a lender or borrower. These costs are called:

Accepted Answer

C. Transaction costs

1. Savers and borrowers need not find each other.
2. Banks cut transaction costs.
3. They are financial intermediaries.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 13, Money and Banking (CC BY 4.0)._

Answer

Sunk cost losses

Answer

Fixed cost burdens

Answer

Opportunity costs

Banks lower the cost of finding a lender or borrower. These costs are called:

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