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solution

A finance company invests in loans to families who intend to
finance the purchase of garden beds. The finance company,
raises funds by issuing commercial paper to Queensland state
government, who has a treasury surplus.

Which type of finance is it?

A.

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

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 source of funds only

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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