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The Flow of Funds 2. Suppose your great uncle decides to take this month's savings and purchase a bond issued by the Gateway Computer Company
The Flow of Funds 2. Suppose your great uncle decides to take this month's savings and purchase a bond issued by the Gateway Computer Company to finance an increase in computer components in their new factory. Describe how this exchange can be analyzed in the flow-of-funds framework The Functional Perspective 3. Would you be able to get a student loan without someone else offering to guarantee it? 4. Give an example of a new business that would not be able to get financing if insurance 5.Suppose you invest in a real-estate development deal. The total investment is 6. Give an example of how the problem of moral hazard might prevent you from getting against risk were not available $100,000. You invest $20,000 of your own money and borrow the other $80,000 from the bank. Who bears the risk of this venture and why? financing for something you want to do. Can you think of a way of overcoming this
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