Podcast
Questions and Answers
Which one of the following accurately describes a real investment/asset?
Which one of the following accurately describes a real investment/asset?
- It is intangible and does not contribute to the productive capacity of the economy.
- It can be tangible or intangible and is used to produce goods and services. (correct)
- It is a 'paper' contract that claims to the income generated by real assets.
- It is a financial asset that directly contributes to the productive capacity of the economy.
Which one of the following accurately describes a financial investment/asset?
Which one of the following accurately describes a financial investment/asset?
- It is a 'paper' contract that claims to the income generated by real assets. (correct)
- It can be tangible or intangible and is used to produce goods and services.
- It is tangible and directly contributes to the productive capacity of the economy.
- It is intangible and does not contribute to the productive capacity of the economy.
What is the investment process?
What is the investment process?
- The decision about how much to invest in securities.
- The decision about which securities to invest in.
- The decision about which securities and how much to invest in. (correct)
- The decision about how much to invest in real assets.
During a high earnings period, it is advisable to...
During a high earnings period, it is advisable to...
What is one mechanism to mitigate agency problems?
What is one mechanism to mitigate agency problems?
Flashcards
Real investment
Real investment
A physical or conceptual item used to make products or services.
Financial investment
Financial investment
A paper contract, like stock, that represents the right to the income from a real asset.
Investment Process
Investment Process
Choosing which securities, like stocks or bonds, to buy, and how much to invest.
High Earnings Period
High Earnings Period
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Agency Problem Solution
Agency Problem Solution
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