Determine whether each of the following is direct financing or indirect financing.

Question

Column A
1.

investing in a mutual fund:

investing in a mutual fund

2.

taking out a loan at a commercial bank:

taking out a loan at a commercial bank
3.

selling stock on the stock market:

selling stock on the stock market
4.

selling bonds on the capital market:

selling bonds on the capital market

Column B
a. Direct Financing
b. Indirect Financing

Answer 1

Column A
1. Investing in a mutual fund: Indirect Financing
2. Taking out a loan at a commercial bank: Direct Financing
3. Selling stock on the stock market: Indirect Financing
4. Selling bonds on the capital market: Indirect Financing

Column B
a. Direct Financing
b. Indirect Financing