The Second-Largest Source of Revenue for the U

question 100

Multiple Choice

The second-largest source of revenue for the U.S.federal government is:

• A) the corporate income tax.
• B) the individual income tax.
• C) excise taxes,such as taxes on gasoline and alcohol.
• D) Social Security and Medicare taxes.

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Definitions:

Risk Premium

The additional return over the risk-free rate that an investment is expected to yield, compensating investors for taking on higher risk.

Default Risk

The risk of loss arising from a debtor failing to make required payments on their debt obligation.

Cost Of Borrowing

The total expense that a borrower pays to secure and utilize a loan, including interest rates, fees, and other charges.

Revolving Loan

A loan that provides the borrower with the ability to draw down, repay, and re-borrow funds up to a designated amount over a given period.