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) The level of legal protection for investors in the United States is relatively low.
B) 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.
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) Even when entrepreneurs cannot secure sufficient funding for projects from banks, venture capital firms may be willing to lend money.
D
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The prisoners' dilemma is a tool of social analysis, and it shows why
A) individuals sometimes behave in ways inconsistent with their own best interest. B) judges sometimes hand down sentences heavier or lighter than the law recommends. C) people who break the law and are caught are behaving irrationally. D) people who break the law and are caught are behaving rationally. E) societies sometimes produce situations no member of the society wants.
In perfect competition, an individual firm
A) faces unitary elasticity of demand. B) has a price elasticity of supply equal to one. C) faces a perfectly elastic demand. D) has perfectly elastic supply.