Of the Following, the Largest Single Component of U

question 103

Multiple Choice

Of the following, the largest single component of U.S. federal government expenditures is spent on

• A)national defense.
• B)purchases of goods and services for purposes other than national defense.
• C)Medicare and Medicaid.
• D)interest paid on the national debt.
• E)transfers to state and local governments.

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Definitions:

Premium

Premium in finance usually refers to the extra amount paid over the standard or nominal value, as in insurance premium payments or the additional amount to purchase securities.

Discount

A reduction applied to the nominal price of goods, services, or securities, often to incentivize purchase or investment.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government considered a safe investment with maturity periods typically over 20 years.

Coupon

The periodic interest payment made to bondholders during the life of a bond.