Direct Finance Occurs When

question 43

Multiple Choice

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) banks get involved with financing.

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Definitions:

Collateral Contract

A separate contractual obligation that can stand alone, independent of the written contract.

Inferred Trust

A trust implied by law to work out justice between the parties, based on certain circumstances or conduct, as opposed to being established by explicit words.

Vicarious Performance

Performance by another designated person of the obligations under a contract rather than the actual contracting party.

Qualified Person

An individual who possesses the necessary education, experience, and credentials to perform a specific job or task.