Kendrick wants to start a tax preparation company and is going to his bank to borrow $50,000.This is an example of

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This is an example of indirect finance because Kendrick is borrowing funds from a financial intermediary, the bank, which will then lend these funds to him. Direct finance would involve Kendrick borrowing funds directly from investors through the sale of securities in a financial market. This is not a primary or secondary market transaction because Kendrick is not buying or selling securities, but rather borrowing funds from a financial intermediary.

Kendrick Wants to Start a Tax Preparation Company and Is