What Will the Federal Government Have to Do in Order

question 188

Multiple Choice

What will the federal government have to do in order to redeem the bonds in the Social Security Trust Fund?

• A) raise taxes
• B) cut expenditures on other government programs
• C) borrow additional funds
• D) Some combination of a, b, and c.

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Definitions:

Stock Split

A corporate maneuver where a firm expands its existing shares into a greater quantity to increase the shares' liquidity.

Trading Range

The range within which a security’s price fluctuates over a given period, indicating the highest and lowest prices reached.

Outstanding Shares

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Flotation Costs

Flotation costs are the expenses incurred by a company in issuing new securities, including underwriting fees, legal fees, and registration fees.