Who is most easily able to borrow money via direct finance?

Question

Quizplus · Accepted Answer

Large established firms are usually viewed as having lower risk and more stable cash flows, making them more easily able to borrow money via direct finance. Private individuals, nonprofit corporations, and government agencies may have higher risk profiles and limited access to capital markets, making it more difficult for them to obtain direct financing. Financial intermediaries such as banks and credit unions serve as the middlemen between lenders and borrowers, and while they may also borrow money through direct finance, they typically do so for the purpose of lending to others.

Who Is Most Easily Able to Borrow Money Via Direct