Which of the Following Takes Place in the Direct Finance

question 164

Multiple Choice

Which of the following takes place in the direct finance market?

• A)Firms borrow funds from banks.
• B)Deposits from savers are accumulated and loans made to borrowers.
• C)Ownership in corporations is sold in the form of preferred stock.
• D)Banks offer savings accounts to customers.

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Definitions:

Comparability

The quality that allows users to analyze trends in financial data across different time periods within a company or compare financial data across companies.

Understandability

Understandability in accounting means financial information should be presented clearly and concisely, making it easy for users to comprehend.

Conceptual Framework

An underlying structure in various fields that outlines principles and concepts for systematic study or analysis.

Publicly Traded

A company whose shares are bought and sold on stock exchanges, allowing investors to own a part of the company.