It is difficult for individuals to participate in the direct financial markets for the following reason:
A) The direct financial markets re retail markets with a typical minimum transaction size of $1 million.
B) The direct financial markets are wholesale markets with a typical minimum transaction size of $1 million.
C) Major buyers and sellers of securities in indirect financial markets include commercial banks, large corporations, the federal government, hedge funds, and some wealthy individuals.
D) Major buyers and sellers of securities in direct financial markets do not include commercial banks, large corporations, the federal government, hedge funds, and some wealthy individuals.

Question

Quizplus · Accepted Answer

Direct financial markets are wholesale markets with a typical minimum transaction size of $1 million, making it difficult for individuals to participate. Choice A is incorrect because direct financial markets are not retail markets. Choice C is partially correct because major buyers and sellers in indirect financial markets do include commercial banks, large corporations, and the federal government. However, hedge funds and wealthy individuals also participate in indirect financial markets. Choice D is incorrect because commercial banks, large corporations, the federal government, hedge funds, and some wealthy individuals do participate in direct financial markets.

It Is Difficult for Individuals to Participate in the Direct