Loan guarantees provided by the government for specific private-sector investments tend to

Question

Quizplus · Accepted Answer

Loan guarantees provided by the government for specific private-sector investments encourage private investors to participate in a project that they might otherwise find too risky. This helps in attracting funding for the project, which can lead to its successful completion. The government's assurance of a loan guarantee also reduces the cost of capital for the private investor, which can make the project more profitable.

Loan Guarantees Provided by the Government for Specific Private-Sector Investments