Question: 6. How does investment banking differ from commercial banking? 7. For each transaction, identify the real and/or financial assets that trade hands. Are any financial

6. How does investment banking differ from commercial banking? 7. For each transaction, identify the real and/or financial assets that trade hands. Are any financial assets created or destroyed in the transaction? (LO 1-2) a. Toyota takes out a bank loan to finance the construction of a new factory. b. Toyota pays off its loan. c. Toyota uses $10 million of cash on hand to purchase additional inventory of spare auto parts. 8. Suppose that in a wave of pessimism, housing prices fall by 10% across the entire economy. (LC 1-2) a. Has the stock of real assets of the economy changed? b. Are individuals less wealthy? c. Can you reconcile your answers to (a) and (b)

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