Firms are able to expand their operations by acquiring funds from households.They can do this directly through financial markets such as ________,or indirectly through financial intermediaries such as ________.
A) stock markets; bond markets
B) stock markets; banks
C) banks; bond markets
D) bond markets; stock markets

Question

Quizplus · Accepted Answer

Firms can acquire funds directly from households through financial markets like stock markets, where they issue shares. Indirectly, they can obtain funds through financial intermediaries like banks, which collect deposits from households and lend to firms.

Firms Are Able to Expand Their Operations by Acquiring Funds