________ Have Traditionally Been a Major Source of Funds for Established

question 66

Multiple Choice

________ have traditionally been a major source of funds for established firms but are quite restrictive in their lending to start-up firms, as the risk is perceived to be too high.

• A)Investors
• B)Families
• C)Banks
• D)Suppliers

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Definitions:

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, usually on an annual basis.

Money-Demand Curve

Illustrates the relationship between the quantity of money people want to hold and the interest rate, showing how changes in the interest rate affect the demand for money.

Federal Reserve

The central banking system of the United States, responsible for implementing the country's monetary policy and regulating its financial institutions.