Which of These Financial Intermediaries Is Most Likely to Invest

question 31

Multiple Choice

Which of these financial intermediaries is most likely to invest in new companies that are just starting up and have no track record?

• A) Hedge funds
• B) Private equity funds
• C) Venture capital funds
• D) Asset management companies

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.

Black Market

An illegal trade of goods or services that are not sanctioned by the authority, often to avoid taxes or because the goods are prohibited.

Gray Market

involves the trade of legal goods through unauthorized, unofficial, or unintended channels, usually not illegal but discouraged by manufacturers.

Resource Market

The marketplace where resources or inputs (like labor, capital, and raw materials) used to produce goods and services are bought and sold.