Asked by blobby
Financial Markets Channeling Funds Quick Check
3 of 63 of 6 Items
Question
Which of the following is an example of direct finance?(1 point)
Responses
A small business opens a line of credit from a commercial bank.
A small business opens a line of credit from a commercial bank.
A company sells its stocks to investors.
A company sells its stocks to investors.
An individual applies for a mortgage through a mortgage bank.
An individual applies for a mortgage through a mortgage bank.
An individual deposits funds into a savings account at his credit union.
Answers
There are no human answers yet.
Answered by
GPT-4o mini
The correct answer is:
**A company sells its stocks to investors.**
This is an example of direct finance because the company is directly raising funds from investors without any intermediary financial institution involved in the transaction.
**A company sells its stocks to investors.**
This is an example of direct finance because the company is directly raising funds from investors without any intermediary financial institution involved in the transaction.
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