Which of the following is not one of the eight basic puzzles about financial structure?
A) Only large, well-established corporations have access to securities markets to finance their activities.
B) Indirect finance, which involves the activities of financial intermediaries, is many times more important than direct finance, in which businesses raise funds directly from lenders in financial markets.
C) Collateral is a prevalent feature of debt contracts for households, but not business since they have many alternative sources for funds.
D) Banks are the most important source of external funds to finance businesses.
Answer: C
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