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Question: qld finance a finance company raises funds by issuing commercial...

Question details

Qld Finance, a finance company, raises funds by issuing commercial paper to Coca Cola, who has a treasury surplus. The finance company invests in loans to households who intend to finance the purchase of furniture.

Which type of finance is it?

 

A.

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

B.

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

C.

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

D.

Two separate cases of direct finance, both using financial markets for the source of funds.

E.

Indirect finance without the use of financial markets

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