Which of the Following Is the Most Fundamental Function of Government

question 65

Multiple Choice

Which of the following is the most fundamental function of government?

• A) protection of individuals and their property
• B) imposing progressive taxes to fund income-transfer programs
• C) regulating prices and wages
• D) provision of postal services and garbage collection

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation or a creditor relationship with a government or corporation.

Perpetuity

An annuity that pays a constant stream of cash flows indefinitely.

Duration

An indicator of how a bond or debt security's price is affected by interest rate fluctuations, usually stated in terms of years.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.