Which of the following is NOT an example of transactions costs? A high interest rates B lawyers' fees for drawing up a loan contract C brokerage commissions D minimum investment requirements

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.