Securities are ________ for the person who buys them, but are ________ for the individual or firm...

1) Which of the following can be described as involving indirect finance?

A) You make a loan to your neighbor.

B) You buy shares in a mutual fund.

C) You buy a U.S. Treasury bill from the U.S. Treasury.

D) A corporation buys a short-term security issued by another corporation in the primary market.

2) Securities are ________ for the person who buys them, but are ________ for the individual or firm that issues them.

A) assets; liabilities

B) liabilities; assets

C) negotiable; nonnegotiable

D) nonnegotiable; negotiable

3) With ________ finance, borrowers obtain funds from lenders by selling them securities in the financial markets.

A) active

B) determined

C) indirect

D) direct