(Consider This)During and Immediately Following the Severe Recession of 2007-2009,commercial

question 207

Multiple Choice

(Consider This) During and immediately following the severe recession of 2007-2009,commercial bank reserves held on deposit in Federal Reserve Banks:

• A) rose to a high of 50 percent of total checkable deposits held by banks.
• B) fell significantly as commercial banks withdrew reserves to pay off heavy debt obligations.
• C) increased significantly because of Fed purchases of securities from commercial banks and the paying of interest on bank reserves.
• D) increased significantly because the Fed increased the required reserve ratio.

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Definitions:

Venture Capitalist

An investor who provides capital to startup companies and small businesses with perceived long-term growth potential in exchange for an equity stake.

Market Analysis

The study of the dynamics between potential customers and products to understand the needs and preferences of the target market, competition, and overall viability of a business strategy.

Due Diligence

The comprehensive appraisal of a business or investment opportunity to assess its commercial potential and risks.

Venture Capitalist Group

A collective or organization that invests large sums of money in startups and small enterprises with high growth potential in exchange for equity stakes.