External financing by ________ should be more important in developing countries than in industrialized countries because information about private firms is more difficult to collect in developing countries.
A)financial intermediaries
B)bonds
C)stock
D)direct lending

Question

Quizplus · Accepted Answer

Financial intermediaries, such as banks or microfinance institutions, can provide external financing to firms in developing countries by assessing their creditworthiness and providing loans or other financial products. In developed countries, where information about firms is more readily available, stock and bond markets may be more important sources of external financing.

External Financing by ________ Should Be More Important in Developing