The following are correct statements about the composition of Financial Markets, EXCEPT: O Financial Transactions can be categorized as Direct Finance and Indirect Finance types. OIndirect Finance occurs when a financial intermediary conducts the transaction between savers and borrowers. If a Commercial Bank uses money from depositors and lend the money to a corporation, that is considered Direct Finance. OIf a Corporation issues stocks and sells it to individual investors, that is considered Direct Finance.
The following are correct statements about the composition of Financial Markets, EXCEPT: O Financial Transactions can be categorized as Direct Finance and Indirect Finance types. OIndirect Finance occurs when a financial intermediary conducts the transaction between savers and borrowers. If a Commercial Bank uses money from depositors and lend the money to a corporation, that is considered Direct Finance. OIf a Corporation issues stocks and sells it to individual investors, that is considered Direct Finance.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 1SCQ: Answer these three questions about early-stage corporate finance: Why do very small companies tend...
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