Page 19 - Introduction To Investment Management

Discussion CHAPTER 1:
Part A: True / False.

No. True False
1. The government may seek funding through the
issuance of Treasury bills, Treasury bonds,
including shares to finance development
expenditure.
2. Investment refers to ownership of financial and
physical assets.
3. The speculator is not interested in financial assets
that are purchased but they have a profit making
motive in their mind.
4. Commercial paper is a medium-term debt notes
which serve as collateral on a loan as to avoid a
direct loan from the bank.
5. Business and government sectors are the main
customers of the financial system.
6. Investors are encouraged to invest in cyclical
industries during the economic downturn.
7. The option entitles the holder to buy or sell assets
at determined prices during or before maturity.
8. The contribution of financial assets is not much
helped as compared to physical assets in
developing a country's economy.

Part B: Essay

1. Describe the relationship that exists between the physical assets and financial
assets. In your opinion which of the assets to give better returns?

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2. In your opinion, why individuals should make the investment, whether in physical
assets or financial assets?

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