Which of the Following Is an Example of the Way

question 233

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.

---

Definitions:

Money Income

Income received in the form of currency or through electronic transfers, as opposed to goods or services.

Products J and K

Imaginary or hypothetical products, potentially used in theoretical examples or economic models.

Consumer Equilibrium

A state in which a consumer has allocated their income in a way that maximizes their utility, given their budget constraint.

MU/P Ratio

The Marginal Utility to Price ratio, used in economic analysis to evaluate the satisfaction received from consuming an additional unit of a good relative to its cost.