"If financial markets operated perfectly and without cost financial intermediaries would not exist. All finance would be direct finance." Explain what is meant by the term "direct finance" and state whether you agree or disagree with this statement. Explain why.© BrainMass Inc. brainmass.com June 3, 2020, 5:22 pm ad1c9bdddf
Direct finance- surplus units deal directly with deficit units (1 asset, 1 liability)
<br>Indirect finance- FI(financial intermediaries) collects funds ...
This solution helps explain direct and indirect finance.