Direct finance occurs when A. savers go directly to borrowers for funds. B. borrowers deposit funds into banks, which then loan these funds to savers. C. savers deposit funds into banks, which then loan these funds to borrowers. D. borrowers go directly to savers for funds. E. bankers get involved with financing.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 5QTD
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Direct finance occurs when
A. savers go directly to borrowers for funds.
B. borrowers deposit funds into banks, which
then loan these funds to savers.
C. savers deposit funds into banks, which then
loan these funds to borrowers.
D. borrowers go directly to savers for funds.
E. bankers get involved with financing.
Transcribed Image Text:Direct finance occurs when A. savers go directly to borrowers for funds. B. borrowers deposit funds into banks, which then loan these funds to savers. C. savers deposit funds into banks, which then loan these funds to borrowers. D. borrowers go directly to savers for funds. E. bankers get involved with financing.
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