An example of direct intermediation would be
A)an individual borrowing money from a bank.
B)an individual borrowing money from their mother.
C)an individual using a real estate broker to finance their home purchase.
D)a stockbroker selling securities to an individual.

Question

Quizplus · Accepted Answer

Direct intermediation occurs when the lender and borrower deal directly with each other without the involvement of a financial intermediary. Borrowing money from a family member, such as a mother, is a direct transaction between the lender and borrower, fitting the definition of direct intermediation.

An Example of Direct Intermediation Would Be