Responses
An individual deposits funds into a savings account at his credit union.
An individual deposits funds into a savings account at his credit union.
An individual applies for a mortgage through a mortgage bank.
An individual applies for a mortgage through a mortgage bank.
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
The example of direct finance is:
A company sells its stocks to investors.
In direct finance, borrowers sell securities directly to savers without going through an intermediary, which is the case when a company sells its stocks directly to investors.
