In financial institution-based systems,individual investors hold corporate debt and equity in the following ways:
I.directly;
II.indirectly through banks;
III.indirectly through insurance companies;
IV.indirectly through other financial intermediaries

Question

Quizplus · Accepted Answer

Financial institution-based systems often involve intermediaries such as banks, insurance companies, and other financial intermediaries. This means that individual investors may indirectly hold corporate debt and equity through these intermediaries. Therefore, options II, III, and IV are all possible ways in which individual investors may hold corporate debt and equity in financial institution-based systems. Option I (directly) is also possible, but it's not the only way. Therefore, the best choice is D.

In Financial Institution-Based Systems,individual Investors Hold Corporate Debt and Equity