Which of the following can be described as involving indirect finance?
A) You make a loan to your neighbor.
B) You buy shares in a mutual fund.
C) You buy a U.S. Treasury bill from the U.S. Treasury.
D) A corporation buys a short-term security issued by another corporation in the primary market.
Correct Answer:
Verified
Q1: With direct finance,funds are channeled through the
Q4: With _ finance,borrowers obtain funds from lenders
Q5: The principal lender-savers are
A)governments.
B)businesses.
C)households.
D)foreigners.
Q7: Distinguish between direct finance and indirect finance.
Q9: Which of the following statements about the
Q11: Assume that you borrow $2,000 at 10%
Q12: Well-functioning financial markets
A) cause inflation.
B) eliminate the
Q17: A breakdown of financial markets can result
Q18: Financial markets have the basic function of
A)getting
Q19: Securities are _ for the person who
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