Since the 1960s, Entitlement Programs Have Taken Up More and More

question 25

Multiple Choice

Since the 1960s, entitlement programs have taken up more and more of the federal budget, so that today they represent ________ percent of federal spending.

• A) 15
• B) 30
• C) 40
• D) 60

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Definitions:

Longer-Duration Bonds

Fixed-income securities with extended time frames to maturity, typically exposing investors to higher interest rate risk but potentially offering higher yields.

Shorter-Duration Bonds

Bonds with a near-term maturity date, typically less sensitive to interest rate changes and offering less yield compared to longer-duration bonds.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, including all interest payments and the repayment of principal.

Bond's Duration

Bond's duration measures the sensitivity of the bond's price to changes in interest rates, often indicating the average time it takes for a bond to repay its true cost.