Direct financing allows a borrower to:
A) easily assess a lender's level of default risk.
B) match amounts and maturity of investments with borrowers.
C) lower search and transaction costs.
D) diversify their funding sources.

Question

Quizplus · Accepted Answer

Direct financing allows borrowers to diversify their sources of funding by obtaining financing directly from investors rather than solely relying on traditional lenders like banks or financial institutions.

Direct Financing Allows a Borrower To