A Budget Surplus Occurs When Government Receipts Exceed Government Spending

question 212

True/False

A budget surplus occurs when government receipts exceed government spending.

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Definitions:

LEAPS

Long-Term Equity Anticipation Securities, which are options contracts with expiration dates longer than one year, providing a long-duration investment or hedging opportunity.

Strike Price

The specified price at which the holder of an option can buy (call option) or sell (put option) the underlying asset or security until the expiration date.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Stock Price

The current market price at which a share of a company's stock can be bought or sold.