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Multiple Choice Questions

Transaction cost of trading of financial instruments in centralized market is classified as which of...........

Finance (RBI) Financial System

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Transaction cost of trading of financial instruments in centralized market is classified as which of the following?

low transaction costs

flexible costs

high transaction costs

constant costs

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Explanation:

Transaction costs are expenses incurred when buying or selling a good or service. In a financial sense, transaction costs include brokers’ commissions and spreads, which are the differences between the price the dealer paid for a security and the price the buyer pays.

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