Transaction cost,

Definition of Transaction cost:

1. A fee charged by a financial intermediary such as a bank, broker, or underwriter.

2. Economics: The cost associated with exchange of goods or services and incurred in overcoming market imperfections. Transaction costs cover a wide range: communication charges, legal fees, informational cost of finding the price, quality, and durability, etc., and may also include transportation costs. Transaction costs are a critical factor in deciding whether to make a product or buy it. Also called frictional cost. See also transfer cost.

How to use Transaction cost in a sentence?

1. The transaction cost was too high if we went through our primary bank so we proceeded with our secondary bank.
2. The transaction cost was something that I didnt like because it meant that I lost some money and therefore had less.
3. You need to understand how much the transaction cost will be and be sure to factor that into your budget.