The level of transaction costs and bid/ask spreads is associated with
A) informational efficiency.
B) operational efficiency.
C) both informational and operational efficiency.
D) weak form efficiency.

Question

Quizplus · Accepted Answer

Operational efficiency is related to the level of transaction costs and bid/ask spreads, as it reflects how well a market facilitates trading at low costs.

The Level of Transaction Costs and Bid/ask Spreads Is Associated