Which of the Following Reasons Can Be Attributed to the Long-Term

question 53

Multiple Choice

Which of the following reasons can be attributed to the long-term financing gap faced by the Social Security and Medicare programs?

• A)Increasing birth rates and health care costs
• B)Pay-as-you-go system and declining birth rates
• C)Traditional system and increased longevity
• D)Increased birth rates and declining longevity
• E)Increased morbidity and birth rates

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Definitions:

Commercial Paper

Short-term unsecured debt issued by large corporations.

CDs

Certificates of Deposit, a type of time deposit at banks and financial institutions offering a fixed interest rate over a fixed period.

Management Fees

Charges paid by investors in a fund (such as mutual funds or hedge funds) to the managers for their services in managing the fund's portfolio.

Front-End Loads

Front-End Loads are fees paid by investors at the time of purchasing mutual fund shares, which reduce the amount of investment actually placed into the fund.