"Default" Occurs When

question 141

Multiple Choice

"Default" occurs when

• A) bond issuers fail to make promised payments.
• B) corporations go bankrupt and stock becomes worthless.
• C) bond purchasers fail to pay full price for a bond.
• D) stocks are not federally insured.

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Definitions:

Form 941

A tax form used by employers in the United States to report quarterly federal taxes withheld from their employees' earnings.

Social Security

A government program that provides financial assistance to people with insufficient or no income, mainly for the elderly, disabled, and survivors.

Medicare Taxes

Taxes collected from earnings to fund the Medicare program, which provides health insurance for individuals aged 65 and older in the United States.

FUTA

The Federal Unemployment Tax Act, which imposes a payroll tax on businesses with employees to fund state workforce agencies.