0
Supplying funds directly involves the surplus unit (person with funds available) lending to a deficit unit (person needing funds) in a financial market (no intermediaries such as banks are needed in the exchange). Indirectly supplying funds means you are giving an ADI (Authorised Deposit-taking Institution) your funds and they will in turn supply this to deficit units.
The fundamental difference is that when you are directly supplying funds you are personally becoming involved in the transaction, whereas indirectly, you are giving funds to a bank, for example, and they are giving you are return on your investment, with which they can do what they please (give it to any deficit unit).
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Can Raw materials be direct or indirect?
raw material are indirect material
Is most financing in the US done through the direct or the indirect markets?
Most of the financing in the United States, however, is done indirectly through financial intermediaries who substitute their credit for the credit of the borrower (user) of funds.
What are direct and indirect barriers of international trade?
life
The difference between indirect and direct characteristics?
direct characterization- is when the author directly states something about the character. indirect characterization-when you learn about the character through their action and dialogue.
In the circular flow of the economy what do households do?
Allow Financial sector to hold savings. Pay tax (direct & indirect) to the Government. Spend on consumption, which goes to Producers. Provide factors of production / resources to Producers.
Methods of preparing statement of Cash flow?
Following are methods:1 - direct method2 - indirect method
In Cash flow statement what is direct method and indirect method?
Direct and indirect method of preparing cash flow statement is same with only one difference which is under indirect method 'Cash flow from operating activities' is prepared by adjusting the net profit amount for non cash items while 'Cash flow from financing activities' and 'Cash flow from investing activities' is prepared in same manner in both methods.
What is direct expenses and indirect expenses?
what is direct and indirect expense
Will both the direct and indirect methods produce the same cash flow from operating activities?
Yes direct and indirect methods are just different reporting styles and it doesn't means that by making cash flow statement from different methods may change the amount of cash flows.
Identify three distinct ways that savings are ultimately transferred to business firms in?
The Direct Transfer of Funds, Indirect Transfer using the investment banker, and Indirect Transfer using the financial intermediary
When do you say direct and indirect?
Direct refers to something that occurs without intermediaries or interruptions, while indirect means it occurs through intermediaries or has intervening factors. For example, a direct flight goes from one point to another without stopping, whereas an indirect flight may involve layovers or connecting flights.
Pattern of direct and indirect speech?
definition direct and indirect statement
What is direct indirect and direct-indirect order when writing letters?
Direct order involves presenting information in a straightforward manner, with main points stated first followed by supporting details. Indirect order involves starting with background information before introducing the main points. Direct-indirect order combines elements of both, starting with a general statement or background information before presenting the main points in a direct manner.
How are direct relationship and an indirect relationship different?
ones direct and the other is indirect..
Is you a direct or indirect object?
"You" can be either a direct or indirect object: It is a direct object in "I want to kiss you." It is an indirect object in "Henry is going to give you the tickets."
Is technique a direct or indirect object?
In grammar, technique can serve as either a direct object or an indirect object, depending on how it is used in a sentence. For example, in the sentence "She taught me a new technique," "me" is the indirect object and "a new technique" is the direct object.
Can passive voice be direct or indirect?
Passive voice can be used in both direct and indirect ways. In the direct form, the focus is on the object that receives the action, while the indirect form places emphasis on the action itself or the person performing the action.
