The Purpose of Introducing Cost-Benefit Analysis into the Federal Bureaucracy

question 243

Multiple Choice

The purpose of introducing cost-benefit analysis into the federal bureaucracy was to

• A) reduce the number of rules created by federal agencies.
• B) place restrictions on federal agencies' budgets.
• C) decide which federal agencies were really necessary.
• D) measure how effective federal agencies were.
• E) All of the above are correct.

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Definitions:

Yield

Yield is the income return on an investment, expressed as a percentage of the investment’s cost or current market value, commonly used for bonds and dividend-paying stocks.

Zero-Coupon Bonds

Bonds that don’t make periodic interest payments but are issued at a discount to their face value and redeemable for the face amount at maturity.

Expected Interest Rate

The anticipated rate at which interest is to be paid by a borrower for the use of money.

Municipal Bonds

Bonds issued by local government or municipalities, typically offering tax-exempt interest payments.