A. high interest rates. This is the CORRECT choice

Transaction cost is the cost incurred (in addition to the price of the good or service itself) when buying or selling a good or service. Some examples are commission, fees or taxes, legal fees, communication charges, intermediary charges, information cost of finding the price, labor required to bring a good or service to market. Transaction costs create profit opportunities for those who can help reduce these costs. Transaction costs become a critical factor when deciding to make a product or purchase it. The economy becomes more efficient, more capital and labor are freed to produce wealth when transaction costs diminish.