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Alex73 [517]
3 years ago
6

Which of the following statements regarding direct finance is true​? A. In the United​ States, more funds flow through the direc

t financial channels than through indirect financial channels. B. Securities are assets for the firm that issues them and liabilities for the individual that buys them. C. Direct finance requires the use of financial intermediaries. D. Direct finance occurs when borrowers sell securities directly to lenders.
Business
1 answer:
NemiM [27]3 years ago
8 0

Answer: Option D

Explanation: In simple words, direct finance refers to the situation when the borrowers borrows money directly from lenders, and do not consider taking help from any intermediary. In other words, when the issuers in the financial market sell their securities directly to the general investors then such financing is termed as direct financing.

This financing is cheaper and benefits both he lender and the borrower. Hence we can conclude that the correct option is D.

   

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Different tools and materials needed in <br> building beddings​
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On January​ 1, 2019, Commercial Equipment Sales issued $ 29 comma 000 in bonds for $ 21 comma 700. These are sixminusyear bonds
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the journal entry to record the coupon payment in June 30,2019:

Dr Interest expense 2,058.33

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