Questions
My home Practice Quiz [non-assessed]
Single choice
What are the two basic mechanisms by which funds flow through the financial system?
Options
A.a. Indirect financing and debt financing
B.b. Direct financing and indirect financing
C.c. Equity financing and debt financing
D.d. Direct financing and equity financing
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
The question asks to identify the two basic mechanisms by which funds flow through the financial system.
Option a: Indirect financing and debt financing. Here, indirect financing is one mechanism, but pairing it with debt financing is inaccurate because debt financing is a type of financing instrument, not a separate mechanism of fund flow......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
Which of the following is NOT one of the special functions thatfinancial institutions provide?
Which of the following can be described as involving indirect finance?
Question3 How many of the following statements are correct in regards to intermediated financing arrangements? I. Users of funds obtain financing directly from money and capital marketsII. Financial instruments are issued directly between savers and borrowersIII. A commercial bank stands between savers and borrowers, with two separate contractual agreementsIV. Borrowers avoid the costs of intermediation and have increased flexibility in issuing securitiesV. There are higher search costs for suppliers of funds Two statements are correct Three statements are correct Four statements are correct All five statements are correct One statement is correct ResetMaximum marks: 1 Flag question undefined
Question3 How many of the following statements are correct in regards to intermediated financing arrangements? I. Users of funds obtain financing directly from money and capital marketsII. Financial instruments are issued directly between savers and borrowersIII. A commercial bank stands between savers and borrowers, with two separate contractual agreementsIV. Borrowers avoid the costs of intermediation and have increased flexibility in issuing securitiesV. There are higher search costs for suppliers of funds All five statements are correct One statement is correct Four statements are correct Three statements are correct Two statements are correct ResetMaximum marks: 1 Flag question undefined
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!