In a world without information and transaction costs, financial intermediaries would not exist. Is this statement true,

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In a world without information and transaction costs, financial intermediaries would not exist. Is this statement true, false, or uncertain? Explain your answer.

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:13 AM

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In a world without information and transaction costs, financial intermediaries would not exist. Is this statement true,

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True If there are no information or transactions costs people could make loans to each o...View the full answer

Economics of Money, Banking and Financial Markets

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