Question

A flow of funds from savers to borrowers through financial intermediaries such as banks is ▼ direct indirect ​finance, while a flow of funds from savers to firms through financial​ markets, such as the new york stock exchange is

Answer 1

As money flows from borrowers through the intermediaries, this becomes a form of indirect finance, since the business is not directly receiving the money. When the firms receive the money from the savers personally, this is a form of direct finance.