A Budget Deficit Would Result When a Person's or Family's

question 44

Multiple Choice

A budget deficit would result when a person's or family's:

• A)actual spending is less than planned spending.
• B)actual spending is greater than planned spending.
• C)actual spending equals planned spending.
• D)assets exceed liabilities.
• E)net worth decreases.

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Definitions:

Bonds

Debt securities issued by entities (governments or corporations) to raise capital, promising to pay back with interest at a specified date.

Stocks

Shares of ownership in a corporation, giving holders a claim on part of the company's assets and profits.

Portfolio Construction

The process of selecting a mix of assets to achieve specific investment goals, taking into account risk tolerance and investment horizon.

Security Analysis

The process of examining and evaluating the financial health of securities for investment purposes, often involving fundamental or technical analysis.