The Three Largest Categories of Spending by the Federal Government

question 400

Multiple Choice

The three largest categories of spending by the Federal government in order from first to third would be

• A) Social Security, Medicare, and national defense
• B) national defense, net interest, and Social Security
• C) Social Security, national defense, and income security
• D) income security, Social Security, and national defense

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Definitions:

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, where the borrower commits to paying back the principal along with interest.

Retirement

The act of leaving one's job and ceasing to work, typically due to age, with various financial planning strategies employed to ensure financial security.

Future Interest

A legal right to property ownership, possession, or enjoyment that begins at a future date.

Effective Interest Method

A technique used in accounting to allocate the discount or premium on bonds payable over their life to interest expense, reflecting a constant rate of interest.