what is meant by monitoring costs 621364

The average cost of administering a deal is the sum of its screening and monitoring costs, along with the cost of making any adjustments that monitoring indicates would be desirable.

  1. What is meant by screening costs?
  2. What is meant by monitoring costs?
  3. Which of the following factors can lead to A lower average cost of administering a deal? Which ones would lead to A higher average cost?
    • Larger transaction volume
    • Greater informational difference between clients and financier
    • Financiers having more experience with the deal

Markets with impediments to arbitrage