CLEAN A 1/1/25 Exam
,AFM 121 MIDTERM EXAM LATEST EXAM 2025
AFM 121 MIDTERM EXAM LATEST EXAM
2025
what are the 3 components of wealth transfer process - 1. financial instruments
2. financial markets
3. financial intermediaries
what is a financial instrument - what is bought and sold in a financial market
what is a financial market - a place that facilitates the buying and selling of
financial instruments
what are financial intermediaries - people or companies that are involved with
financial markets and instruments
what is capital - savings of
- individuals
- corporations
- governments
AFM 121 MIDTERM EXAM LATEST EXAM 2025
, AFM 121 MIDTERM EXAM LATEST EXAM 2025
how is capital utilized/transferred/invested - direct and indirect investments
what is an example of direct investment - assets that generate wealth (land, real
estate, equipment)
what are some indirect investment - financial assets such as:
- stocks
- bonds
- tbills
T/F - individuals issue financial assets to receive funds - False, companies and
governments issue these financial assets and receive funds
what is the relationship between investors and financial assets - investors buy
financial assets to generate a return
T/F - Capital is mobile, scarce and sensitive - True capital is mobile scarce and
sensitive
what does capital flow depend on - - political environment
- economic trends
- fiscal policy
- monetary policy
- investment opportunities
- labour force
AFM 121 MIDTERM EXAM LATEST EXAM 2025