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Radar systems were initially limited to military applications, but today most people encounter radar applications everyday. Given the broad range of applications, a variety of radar types and technologies have emerged to meet unique needs. This paper discusses about the latest advances on system performance and testing of radar systems. When performing characterization of a radar receiver design, a variety of signals are required to accurately recreate the operational environment. This paper will review the test signal environment needed for evaluation of various modern radar systems. Performance considerations in terms of signal source fidelity and spectral purity will also be investigated.