Financial intermediaries are able to exploit economies of scale since
A) the equipment or expertise necessary for one transaction can be applied to other transactions.
B) they have special licenses needed to perform financial transactions.
C) financial markets fail to do so.
D) they can reduce transactions costs, but not information costs.

Question

Quizplus · Accepted Answer

Financial intermediaries are able to exploit economies of scale because they can apply the equipment or expertise needed for one transaction to other transactions. This allows them to reduce costs per transaction and increase efficiency.

Financial Intermediaries Are Able to Exploit Economies of Scale Since