Respuesta :
A cost associated with finding a lender or a borrower for money is called a transaction cost. One of the most important factors affecting net returns is transaction expenses. The correct option is (c).
What do you mean by the transaction cost?
Costs associated with buying or selling a good or service are known as transaction costs. The labor involved in bringing a product or service to market is represented by transaction costs, and this labor has given rise to entire industries devoted to facilitating transactions.
Broker commissions and spreads, or the price difference between the price the dealer paid for a security and the amount the buyer pays, are considered transaction expenses in the financial sense.
Investors should choose assets with costs that are at the low end of the range for their categories since different asset classes have varied ranges of transaction costs.
Therefore, a cost associated with finding a lender or a borrower for money is called a transaction cost. One of the most important factors affecting net returns is transaction expenses.
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