Which of the following is NOT a possible disadvantage of direct financing?
A) Matching amounts of funds to be borrowed with those to be lent
B) Assessment of the risk of the borrower
C) Cost of preparing legal contracts, taxation and accounting advice
D) Cost of the financial intermediary involved

Question

Quizplus · Accepted Answer

Direct financing eliminates the need for financial intermediaries, so the costs associated with these intermediaries are not a disadvantage of direct financing.

Which of the Following Is NOT a Possible Disadvantage of Direct