Suppose you and your friend are in a shopping mall and you borrow $100 from your friend to pay for a handbag that you purchase in a shop. This is an example of

Question

Quizplus · Accepted Answer

Direct financing involves borrowing funds directly from a lender, such as a friend or family member, without going through a financial intermediary. In this case, you borrowed $100 directly from your friend to pay for the handbag, which is an example of direct financing.

Suppose You and Your Friend Are in a Shopping Mall