Direct Financing Allows a Borrower To

question 49

Multiple Choice

Direct financing allows a borrower to:

• A) easily assess a lender's level of default risk.
• B) match amounts and maturity of investments with borrowers.
• C) lower search and transaction costs.
• D) diversify their funding sources.

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Definitions:

Cheetah Hunts

An occurrence in nature where cheetahs, as predators, pursue and capture their prey using high-speed chases.

Non-Associative Learning

A form of learning characterized by a change in behavior due to repeated exposure to a stimulus, without the involvement of a reward or punishment.

Associative Learning

A learning process by which an individual comes to link certain stimuli and responses, leading to changes in behavior.

Long-Term Potentiation

A long-lasting increase in signal transmission between two neurons that results from their simultaneous activation, believed to be a mechanism that underlies learning and memory.