Which of the Following Constitutes the Highest Portion of Expenditures

question 85

Multiple Choice

Which of the following constitutes the highest portion of expenditures in the national budget?

• A) discretionary defense spending
• B) Social Security and Medicare combined
• C) foreign aid
• D) transportation
• E) net interest paid on the national debt

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Definitions:

Debt To Total Assets Ratio

A financial metric indicating the proportion of a company's total assets that are financed by debt.

Times Interest Earned Ratio

A financial metric that compares a company's operating income to its interest expenses, used to evaluate its ability to meet its interest obligations.

Solvency

The ability of an entity to meet its long-term financial obligations and continue its operations indefinitely.

Leverage

Refers to the use of borrowed funds to finance the acquisition of assets, aiming to increase the returns to equity shareholders.