The transfer of financial instruments from suppliers of funds to users of funds without any intermediary in between is classified as _____________?
Correct answer: C. direct transfer
- A. global transfer
- B. pension transfer
- C. direct transfer
- D. indirect transfer
Explanation
A direct transfer occurs when savers provide funds directly to borrowers by purchasing their financial instruments, without a financial intermediary. An indirect transfer uses institutions such as banks, mutual funds, or insurance companies.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The type of security backed by mortgage cash flows and are packed by financial instruments is classified as _____________?
The institutions deal in financial functions and protects corporations and individuals against accidents, theft and death are considered as ____________?
The additional debt instruments or equity instruments of publicly traded firm are included in the markets classified as ____________?
The risk stating the assets are sold at low prices because of sudden surge in withdrawals of liabilities is classified as ___________?
The legal document required by Securities Exchange Commission stating associated risks and detailed description of issues is classified as ______________?
The type of risk in which payments are interrupted by the intervention of foreign governments is considered as ____________?