The Interest Paid on Internally Held Debt

question 227

Multiple Choice

The interest paid on internally held debt:

• A) is a real claim on American goods and services.
• B) is roughly 20% of the federal budget.
• C) is paid out to one group of Americans from the taxes collected from another group of Americans.
• D) is a real burden on the U.S. economy.

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Definitions:

Worthless Securities

Describes financial instruments that have lost all monetary value.

Due Diligence

The comprehensive investigation or exercise of care that a reasonable business or person is expected to undertake before entering into an agreement or transaction.

Gross Misstatements

Significant errors or falsehoods in a financial statement or other crucial documents.

Reasonable Investigation

A diligent inquiry or examination to discover facts or gather evidence, conducted within the bounds of what is considered reasonable under the circumstances.