New Institutional economists try to explain how we create rules to reduce transaction costs and overcome uncertainty so that we can trust each other enough engage in anonymous trade with strangers over long distances.

What is a modern example of an institution that we have developed that helps us accomplish ONE of the following goals?

1. Reduce the cost of gathering information;

2. Increase the mobility of capital; and

3. Share risk with others and/or convert uncertainty into risk?

Your example should be something that was not discussed in class or in the reading, example usual examples .You do not have to identify one rule or contractual arrangement that accomplishes all three. You should identify one rule or contractual arrangement that accomplishes one of these three goals. Tell me which goal it accomplishes, how it accomplishes that goal, and how this leads to an increase in the volume of trade.

Two well-done paragraphs explanation please.