Suppose you come up with a wonderful new invention, and after borrowing as much as you can from a bank, you believe that additional capital is needed to make the invention marketable. Your small new company would be most likely to find additional capital from the:
A. bond credit channel.
B. equity credit channel.
C. stock credit channel.
D. venture capital credit channel.

Respuesta :

Answer:

B. equity credit channel

Explanation:

Investment banks specialize in creating shares of stock for a company to raise funds through selling equity.

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The credit channel mechanism of the monetary policy describes the theory that a central bank's policy changes, explained further.

What are Credit Channels?

The credit channel mechanism of monetary policy reflects the hypothesis that changes in a central bank's policies impact the quantity of credit available to enterprises and consumers for purchases, hence affecting the real economy.

When someone comes up with new innovation and wants to sell it for as much money as possible by borrowing as much money as possible from a bank. The equity credit Channel is the most likely source of extra financing for your modest new organization.

Learn more about Credit Channels here:

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