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ogle Chrome aplia.com/af/servlet/quiz?quiz action-takeQuiz&iquiz;_probGuid-QNAPCOA8010100000041ebc4900400008ctx-ream-00578uck-m 1528888611210 0A gnment T Read chapter 2 Back to Assighment Attempts: 2 Keep the Highest: 2/4 1. Capital allocation process The capital allocation process involves the transfer of capital among different entities that include individuals small businesses, banks, financial intermediaries, companies, mutual funds, and other market participants. In a developed market economy, capital flows freely between entities that want to supply capital to those who want it This flow of capital can be classified in three ways. In the table below, identify the nature of capital transfer given in the scenario with its appropriate classification Indirect Transfers through Investment Banks Indirect Transfers through Financia Intermediaries Scenario Direct Transfers Entrepreneurs often start businesses by seeking financial help from family and friends. Shylock, a moneylender in Shakespeare's play The Merchant of Venice, lends his own money to Antonio, who needs 3,000 ducats to help his friend Israel launched a 10-year global bond issue of $1.5 billion in early 2009. Leading investment banks like Citigroup, Deutsche Bank, and Goldman Sachs managed the deal. (Source: Reuters.com, Mar. 18, 2009.) Elliot invests $25,000 by purchasing 1,000 shares of an emerging markets mutual

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S.No. Scenario Type of Transfer 1 Enteprenuers often start businesses by seeking financial help from family and friends Direct Transfer 2 Shylock lends money to Antonio Direct Transfer 3 Israel launched a 10-year global bond issue of $1.5 billion in early 2009. Leading investment banks like Citigroup, Deutsche Bank, and Goldman Sachs managed the deal Indirect Transfers through Investment Banks 4 Elliot invests $25,000 by purchasing 1,000 shares of an emerging markets mutual fund. This mutual fund invests in companies in Brazil, India, and China. He bought the mutual fund from the mutual fund company Indirect Transfers through Financial Intermediaries

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