The Balanced Budget Act of 1997 Mandated a Balanced Federal

question 7

Multiple Choice

The Balanced Budget Act of 1997 mandated a balanced federal budget, but what changed to allow Congress to ignore it?

• A) 2008 recession
• B) 9/11
• C) European Monetary Collapse
• D) Rise in interest rates
• E) Supreme Court declaring it unconstitutional

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Definitions:

Entitled to Priority

Entitled to priority refers to a situation where certain claims, such as debts or interests, are given precedence over others in the event of a bankruptcy or liquidation.

Secured Creditors

Creditors who have a legal claim or lien on specific assets of the debtor as collateral for the debt.

Unsecured Creditors

Creditors who have claims on the assets of a debtor but no collateral securing those claims.

Non-exempt Asset

An asset that is not protected under bankruptcy laws and can be seized to satisfy creditor claims.