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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.

B.

Indirect finance without the use of financial markets

C.

Indirect finance using the financial markets for the intermediary's use of funds only

D.

Indirect finance using the financial markets for the intermediary's use and source of funds

E.

Indirect finance using the financial markets for the intermediary's source of funds only

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