Principles of Finance: Financial Instruments, Financial Markets, and Financial Institutions Chapter 3 Cechetti True or False answer). (If the answer is false, you are required to come up with the CORRECT 1) When a bank lends $500,000 to Mr. Wang for a mortgage on a building he wants to buy, this transaction is considered DIRECT FINANCE. 2) When LYFT went public, it accessed investors in the financial markets. This is an example of DIRECT FINANCE. Answer: 3) What is the role of the Financial System? 4) When a wealthy investor decides to buy a business for $1,000,000 but only uses $100,000 of her own money and borrows the rest to purchase the business, this is called 5) What does it mean to "deleverage