Which of the Following Committees Typically Initiates Tax Legislation

question 31

Multiple Choice

Which of the following committees typically initiates tax legislation?

• A)House Ways and Means Committee
• B)Joint Conference Committee
• C)Senate Finance Committee
• D)Senate Tax Committee
• E)None of the choices are correct.

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Definitions:

Investment Grade

Refers to the quality of a company's credit. To be considered investment grade, a company's debt must be rated at BBB- or higher by Standard and Poor's, or Baa3 or higher by Moody's.

Standard & Poor's

A financial market intelligence company known for its stock market indices such as the S&P 500, as well as its credit ratings of borrowers.

Liquidity Preference Theory

A theory that suggests investors demand a higher interest rate or premium on securities with longer maturities to compensate for the increased risk of holding them.

Term Structure

The relationship between interest rates or bond yields and different terms to maturity, represented graphically by the yield curve.