Which of the Following Is NOT a Major Advantage of Direct

question 4

Multiple Choice

Which of the following is NOT a major advantage of direct finance?

• A) Direct finance reduces financial institution' fees.
• B) Direct finance allows borrowers to diversify sources of funds.
• C) Direct finance allows greater flexibility in funding types.
• D) Direct finance reduces search and transactions costs.

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Definitions:

Standard Error

A statistical term that measures the accuracy with which a sample distribution represents a population by using standard deviation.

Regression Line

A straight line that best fits the data points in a scatter plot, showing the relationship between two variables.

Sum Of Squares

A statistical measure that quantifies the dispersion of a set of data points by summing the squared deviations from their mean.