Question: a finance company raises funds by issuing commercial paper to...
Question details
A finance company raises funds by issuing commercial paper to Rio Tinto, who has a treasury surplus. The finance company invests in governments and corporate loans, issued to finance the purchase of some buildings.
Which type of finance is it?
| A. |
Two separate cases of direct finance, both using financial markets for the source of funds. |
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| B. |
Indirect finance without the use of financial markets |
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| C. |
Indirect finance using the financial markets for the intermediary's use of funds only |
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| D. |
Indirect finance using the financial markets for the intermediary's use and source of funds |
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| E. |
Indirect finance using the financial markets for the intermediary's source of funds only |
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