What Type of Clause Forces the Expiration of a Program

question 29

Multiple Choice

What type of clause forces the expiration of a program or policy after a specified number of years without congressional reauthorization?

• A) sunshine clause
• B) exit clause
• C) sunset clause
• D) finite clause
• E) temporary clause

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Definitions:

Direct Financing Lease

A type of lease arrangement where the lessor purchases the asset for the lessee and finances it, with lease payments designed to cover the cost and provide a return on investment.

Guaranteed Residual Value

The predetermined value of a leased asset at the end of the lease term, which the lessee may have to pay or receive depending on the lease agreement.

Implicit Interest Rate

The interest rate embedded in a lease or loan agreement, discernible through the payment terms but not explicitly stated.

Lease Receivable

The amount of money owed to a lessor under the terms of a lease agreement for the use of an asset.