The example of direct finance is: A company sells its stocks to investors.
In direct finance, borrowers obtain funds directly from savers without going through an intermediary, and selling stocks directly to investors fits this definition.
Which of the following is an example of direct finance?(1 point)
Responses
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.
An individual deposits funds into a savings account at his credit union.
A company sells its stocks to investors.
A company sells its stocks to investors.
A small business opens a line of credit from a commercial bank.
1 answer