7. Mark whether the situation described below describes direct finance indirect finance: Situation Direct or Indirect? A pension fund allocates employees' contributions to various equity and debt instruments. A corporation issues a first offering of common and preferred stock. Individuals make contributions to a hedge fund whose managers decide what equities to purchase. A local business obtains a loan from a bank. The Federal government pays for its budget deficit by issuing new Treasury bonds. 8. Name and describe the four functions of money