Answered: Smaller firms tend to rely more on…

Smaller firms tend to rely more on financial intermediaries to obtain funds externally due to high transaction costs and information costs. A. True B. False

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 16QP

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Question

Smaller firms tend to rely more on
financial intermediaries to obtain funds
externally due to high transaction costs
and information costs.
A. True
B. False

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