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How Can Using Indirect Finance Rather Than Direct Finance Reduce

question 4

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How can using indirect finance rather than direct finance reduce agency costs associated with monitoring funds demanders?


Definitions:

Rumination

The common practice of letting stressful thoughts run through your mind, over and over.

Stressful Thoughts

Thoughts or ideas that induce a state of stress, worry, or anxiety, often concerning future events or outcomes.

Hostility

It refers to feelings of anger, antagonism, or opposition towards others or situations.

Anger

An emotional response characterized by antagonism toward someone or something you feel has deliberately done you wrong.

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