Which of the Following Can Be Described as Direct Finance

question 122

Multiple Choice

Which of the following can be described as direct finance?

• A)You take out a mortgage from your local bank.
• B)You borrow $2,500 from a friend.
• C)You buy shares of common stock in the secondary market.
• D)You buy shares in a mutual fund.

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Definitions:

Inelastic Demand

A situation where the demand for a product does not change significantly with a change in its price.

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Sushi

A traditional Japanese dish consisting of vinegared rice, usually accompanied by various ingredients like seafood, vegetables, and occasionally tropical fruits.

Income Elasticity

A measure of how much the demand for a product changes in response to a change in consumers' income.