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.
Financial Markets Channeling Funds Quick Check
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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.
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answered13 hours ago
1 answer