When the Social Security System Begins Running a Deficit, the Bonds

question 76

Multiple Choice

When the Social Security system begins running a deficit, the bonds in the trust fund will be drawn down. The funds to redeem these bonds will have to come from

• A) higher taxes, spending reductions in other programs, or additional government borrowing.
• B) the surplus funds deposited in governmental banking accounts.
• C) equity capital being liquidated.
• D) the sale of private equities and securities that the government has been purchasing with the funds.

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Definitions:

Hepatic Portal Vein

Portal vein formed by the superior mesenteric and splenic veins and entering the liver.

Nutrient-Rich Blood

Blood that is high in oxygen and nutrients, often a result of digestion and absorption in the small intestine, ready to be distributed throughout the body.

Liver

A large vital organ in vertebrates responsible for detoxification, protein synthesis, and the production of biochemicals necessary for digestion, among other functions.

Intestinal Villus

Small, finger-like projections that protrude from the inner lining of the small intestine, increasing its surface area for nutrient absorption.