IFIC Study Guide – Chapter 2: Key Players and Market Structure

IFIC Study Guide – Chapter 2: Key Players and
Market Structure

Classify if being direct or indirect investment:

1. government building new highway

2. Ford making new facility

3. I buy stocks of Apple and Google

4. I deposit bonds of Canada - correct answer ✔✔1. Direct

2. Direct

3. Indirect

4. Indirect



What are the 3 characteristics of Capital? - correct answer ✔✔1. Mobile

2. Sensitive to Environment

3. Scarce



NOTES:

The decision as to where capital will flow is guided by country risk evaluation:

politics. economics. fiscal policy(taxes). monetary - correct answer ✔✔n/a



The only source of capital is 1) _________. Governments that are able to operate at a surplus
are called 2)___________ . The users of capital are _____, _____, _______ - correct answer
✔✔1) savings

2 savers

3) individuals. businesses. governments

我。公。政。