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:

U.S. Economy

The economic system of the United States, characterized by private enterprise, diverse industries, and global trade relations.

Truth in Lending Act

A U.S. federal law designed to promote the informed use of consumer credit by requiring disclosures about its terms and cost.

Consumer Credit Advertising

Marketing efforts aimed at promoting credit transactions to consumers, regulated to ensure fairness and transparency.

Baiting

involves luring someone by offering something enticing but not intending to deliver as promised, often used in deceptive marketing practices.