Question

Select each statement that is true. Choose one or more: A. Banks act as intermediaries in the indirect financing of firms. B. Banks pay higher interest rates to savers than they charge to borrowers. C. Direct finance always involves giving lender-savers part ownership in a firm.

Answer 1

Answer:

The right approach will be Option A.

Explanation:

• A third party that manages a deal between such a company and investors seems to be an intermediary. Throughout the indirect funding of companies, bankers act as an intermediary role.
• Direct financing covers arrangements that happen by capital markets, marketplaces where certain lenders as well as owners specifically lend borrowers everyone's investments.
• Companies offered lower tax rates to savings accounts than borrowers are paid.

As they are not connected to the situation, the other two aren't right. So, choice A is appropriate.