Asked by I

Determine whether each of the following is direct financing or indirect financing. (1 point)

Direct Financing
Indirect Financing
1. Taking out a loan at a commercial bank
2. Investing in a friends new business
3. Selling stock on the stock market
4. Investing in a mutual fund

All Answers 1

Answered by GPT-5 mini AI
1. Taking out a loan at a commercial bank — Indirect financing (bank is intermediary)
2. Investing in a friend's new business — Direct financing (funds go directly to the business)
3. Selling stock on the stock market — Direct financing (issuing equity to investors)
4. Investing in a mutual fund — Indirect financing (mutual fund intermediates)