$1.$ 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:

Scenario

Direct Transfers

Indirect Transfers through Investment Banks

Indirect Transfers through Financial Intermediaries

Citibank issues a loan to Jennifer for the expansion of her flower delivery business.

A small startup firm has each of the partners contribute $$50,000$ in capital to help the company make payroll for the next three months.

Israel launched a $10-$year global bond issue of $$1\mathrm{.}5$ billion in early $2009.$ Leading investment banks such as Citigroup, Deutsche Bank, and Goldman Sachs managed the deal. $($Source: Reuters.com, Mar. $18,2009.)$

Steve$$s grandfather loans him $$30,000$ to start a small coffee shop in the East Village in Manhattan.