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.

Question

Quizplus · Accepted Answer

Venture capital firms are more prevalent in the United States than in other countries, and they are more willing to invest in high-risk, high-reward technology projects that traditional banks may be hesitant to fund. This can encourage technological progress by providing startups with the necessary funding to develop innovative ideas.

Which of the Following Is an Example of the Way