Which of the Following Is an Example of the Way

question 225

Multiple Choice

Which of the following is an example of the way the financial markets in the United States can encourage technological progress more efficiently than other countries?

• A)Even when entrepreneurs cannot secure sufficient funding for projects from banks, venture capital firms may be willing to lend money.
• B)The level of legal protection for investors in the United States is relatively low.
• C)Because the financial market in the United States is so large, the quantity of trading in corporate stocks and bonds makes those investments less liquid.
• D)Banks in the United States are more willing to take on risk because the government guarantees each bank cannot lose more than $100,000 on any given loan that defaults.
• E)The low American savings rates increases the number of people willing to lend to new businesses.

---

Definitions:

Independent

Free from external control or influence; self-governing.

Completely Dependent

Being wholly reliant on someone or something else for support, sustenance, or survival.

Produce Sounds

The action or process of creating audible vibrations or noises.

Stringed Instruments

Instruments that produce sound through vibrating strings, typically played by plucking, striking, or bowing.