Question 858 indirect security, intermediated finance, no explanation
Which of the following transactions involves an ‘indirect security’ using a ‘financial intermediary’?
(a) Alice buys Alan’s shares using their share brokers and the securities exchange.
(b) Bell buys Bob’s house using his real estate agent.
(c) Carla lends Carlos money at an interest rate of 10% pa for 3 years.
(d) Dora lends money to her bank at 2% pa and the bank lends the funds to David at 5% pa.
(e) Eve buys Ernie’s government bond using their brokers and the securities exchange.
Copyright © 2014 Keith Woodward