Determine whether each of the following is direct financing or indirect financing.

1. A bank providing a loan to a small business to purchase new equipment - Direct financing

2. An individual investing in a mutual fund that holds a diversified portfolio of stocks and bonds - Indirect financing
3. A company issuing corporate bonds to raise capital for expansion - Direct financing
4. A government providing subsidies to farmers to help them purchase new farming equipment - Indirect financing
5. A credit union offering a mortgage to a homebuyer - Direct financing