Question

Determine whether each of the following is direct financing or indirect financing.(8 points)
Direct Financing Indirect Financing
selling stock on the stock market


taking out a loan at a commercial bank


investing in a friend's new business


investing in a mutual fund

Answer 1

Here’s the classification of each financing method as either direct financing or indirect financing:

**Direct Financing:**
1. Selling stock on the stock market
2. Investing in a friend's new business

**Indirect Financing:**
1. Taking out a loan at a commercial bank
2. Investing in a mutual fund

**Summary:**
- **Direct Financing**: Selling stock on the stock market, Investing in a friend's new business
- **Indirect Financing**: Taking out a loan at a commercial bank, Investing in a mutual fund