Question

Determine whether each of the following is direct financing or indirect financing.(16 points)
Direct Financing Indirect Financing
lending money to a friend to start a business


taking out a loan at a commercial bank


selling stock on the stock market


selling bonds on the capital market

Answer 1

lending money to a friend to start a business - Direct Financing

taking out a loan at a commercial bank - Indirect Financing

selling stock on the stock market - Indirect Financing

selling bonds on the capital market - Indirect Financing