Which of the Following Is True of the Unfunded Mandates

question 33

Multiple Choice

Which of the following is true of the Unfunded Mandates Reform Act of 1995?

• A)All unfunded federal mandates were eliminated.
• B)Only federal mandates affecting education were eliminated.
• C)Only federal mandates affecting welfare assistance were eliminated.
• D)Congress exempted federal mandates dealing with civil liberties and civil rights from elimination.
• E)Congress exempted federal mandates dealing with the environment from elimination.

Assess the impact of usury laws on the availability and cost of loanable funds.

Understand the role of interest rates in investment decisions by individual firms.

Recognize the ethical and religious viewpoints on lending practices.

Understand the concept of interest and how it affects the value of money over time.

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Definitions:

Discount Rate

The discount rate is the interest rate used to determine the present value of future cash flows in discounted cash flow analysis, reflecting the opportunity cost of time and risk.

Cash Flows

The entire volume of cash flows into and from a business, importantly affecting its financial fluidity.

Treasury Bills

These are short-term government securities issued at a discount from their face value, maturing in one year or less.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.