Determine whether each of the following is direct financing or indirect financing. :     investing in a mutual fund Direct Financing? Indirect Financing? taking out a loan at a commercial bank Direct Financing? Indirect Financing? selling stock on the stock market Direct Financing? Indirect Financing? selling bonds on the capital market Direct Financing? Indirect Financing?

Q: (a. investment banking   b. insurance firms  c. commercial banking d. mutual fund  e. pension fund)…

A: The correct answer is commercial banking as banks are the transformer of short term liabilities to…

Q: Mutual funds collect money from its _____ A) lenders B) shareholders C) banks D) loan sharks…

A: The correct answer is B) shareholders.A group of investors invest in mutual funds collectively.…

Q: Which of the following is not a financial institution? Commercial Bank Rating agency O Mutual fund…

A: Financial institution is that organisation or institution in which there is dealing of financial and…

Q: As a potential investor would you prefer to invest in a structured note? Why or why not?

A: Note: Since you have posted multiple independent questions in the same request, we will solve the…

Q: Financing with Debt Versus Equity. It is commonly understood that the cost of financing a…

A: For any entity, there are two ways of raising funds: Equity Financing and Debt Financing. Companies…

Q: Illustrates cash flow patterns that are important when evaluating mortgagepass-through securities?

A: Mortgage pass-through securitiesSecurity is formed when an individual or number of mortgage holders…

Q: Bootstrap financings are buyouts financed by a. the company managers' own assets, b. finance…

A: Bootstrap financings in the realm of private equity refer to a distinctive method of funding…

Q: What are the advantages and disadvantages of direct lending for the bank?

A: Direct lending for banks refers to a lending strategy where banks provide loans directly to…

Q: It is an average interest rate that banks offer in the financial market: a. effective rate b.…

A: Effective Rate: It is the interest rate on a loan provided or financial security restated from the…

Q: What are the three main types of markets for financial capital? The three main types of markets for…

A: A firm needs capital to fund its operations and its activities. A firm can obtain capital from…

Q: Compare raising cash funds in the capital market (selling new shares of stock) versus the bond…

A: Cash can be raised by the firm for multiple purpose such as expansion project, investment in to an…

Q: How do financial intermediaries help small investors access the market?

A: Financial Intermediaries: When two parties in a financial transaction engage in business with each…

Q: A money market mutual fund or exchange-traded fund pools money from investors and purchases various…

A: Mutual funds: They are the institutions which collects money from different investors and then…

Q: Which one of the following choice is not one of the ways to transfer savings to those in needs of…

A: Person to person lending is not a way to tarnsfer savings form those who needs funds.

Q: Investment interest expense does not include: Multiple Choice O interest expense from loans to…

A: Investment interest expense is the interest paid on money borrowed to purchase taxable investments.…

Q: From an investors perspective what are the pros and cons of equity financing? Please discuss.

A: Financing the te requirement of capital by issuing equity shares in the market is called equity…

Q: A bank's net interest margin represents the proportion of its investments that are financed with…

A: The difference between interest paid and interest received, adjusted for the entire amount of…

Q: When a small firm works with an investment banker to raise funds through the sale of bonds on a…

A: Bonds:Bonds are debt instrument also known as a fixed income security that is created for raising…

Q: If you are an investor will you choose to investment in bonds? Why?

A: Bond is a debt security.

Q: Are there any advantages to the equity-holders of banks from them engaging in short-term as opposed…

A: Equity holders enjoy the return from two sources i.e. from the company's end in the form of a…

Q: Commercial paper markets are trading   a. Municipal bonds   b. Private company bonds   c.…

A: Commercial papers are short term debt instruments issued by private companies.