Financing created by an intermediary that involves separate instruments with lenders and borrowers is called:
A)direct financing
B)indirect financing
C)secondary financing
D)none of the above

Question

Quizplus · Accepted Answer

Indirect financing involves the use of an intermediary who creates separate instruments with lenders and borrowers, such as in the case of banks or other financial institutions. Direct financing involves the borrower and lender coming together directly without an intermediary, while secondary financing involves the buying and selling of securities that have already been issued. Therefore, the correct answer is B) indirect financing.

Financing Created by an Intermediary That Involves Separate Instruments with Lenders