Question

Which of the following would be an example of direct finance? Group of answer choices A saver deposits money into a credit union. A saver buys a bond a corporation has just issued so it can purchase capital. None of the above is correct. A saver buys shares in a mutual fund.

Answer 1

A saver buys a bond a corporation has just issued so it can purchase capital.

Step-by-step explanation:

Answer 2

A saver buys a bond a corporation has just issued so it can purchase capital.

Step-by-step explanation:

Direct finance is the process of financing in which the borrower borrows thd fund directly from the financial institution without involving the third party i.e intermediate, broker, etc

In the question, the option b is correct as it derives that a saver could purchase a bond since the corporation issued it so the capital could be purchased

hence, the second option is correct