ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Transaction costs, the time and money spent in carrying out financial transactions, are a major problem for people who have excess funds to lend.

Detailed explanation-2: -The time and work associated with shipping goods or commodities over great distances is another sort of transaction cost. Investors care about transaction costs because they are one of the most important determinants of net returns. For example, transaction costs limit returns.

Detailed explanation-3: -Examples of common transaction costs are labor, transportation, broker fees, bank charges, commissions, etc. The nature and magnitude of transaction costs vary in different business scenarios. Nevertheless, these costs play a huge role in business management and economic growth.

Detailed explanation-4: -Transaction costs are expenses incurred when buying or selling a good or service. Transaction costs represent the labor required to bring a good or service to market, giving rise to entire industries dedicated to facilitating exchanges.