A Fund That Takes Household Savings and Puts Them into ________

question 69

Multiple Choice

A fund that takes household savings and puts them into ________ projects in exchange for a share of the profits if the new business succeeds is a venture capital fund.

• A) government
• B) zero-risk
• C) low-risk
• D) high-risk

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Definitions:

Allocative Efficiency

an optimal distribution of resources in an economy, ensuring that goods and services are distributed according to consumer preferences.

Per-Capita Output

The average production of goods or services per person within a geographical area or country.

Developing Countries

Nations with a lower living standard, underdeveloped industrial base, and low Human Development Index (HDI) relative to other countries.

Modernize Economies

The process of adopting new technologies, implementing policy reforms, and updating infrastructures to improve a country's economic performance and productivity.