Which of the Following Makes Up the Highest Percentage of the Federal

question 31

Multiple Choice

Which of the following makes up the highest percentage of the federal government's revenues as of 2016?

• A)Individual income tax and taxes that are collected along with it
• B)Corporate income tax
• C)Income from the Social Security and Medicare trust funds
• D)Funds obtained through borrowing
• E)Sales tax and property tax

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market.

Cost of Equity

The hypothetical payment made by a business to its equity holders as a reward for the risk involved in investing their money.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates that the stock's price tends to be more volatile than the market.