Direct financing is a situation where:
A)deficit units raise funds from surplus units
B)surplus units raise funds from deficit units
C)deficit units raise funds from financial intermediaries
D)financial intermediaries obtain funds from surplus units.
E)None of these.

Question

Quizplus · Accepted Answer

Direct financing occurs when deficit units (borrowers) raise funds directly from surplus units (lenders or investors) without the intermediation of financial institutions.

Direct Financing Is a Situation Where