Which of These Groups Receive the Smallest Percentage of the Federal

question 121

Multiple Choice

Which of these groups receive the smallest percentage of the federal budget?

• A) Education, transportation, energy, agricultural research, and the arts and humanities
• B) Social Security
• C) Medicaid
• D) Interest on the national debt
• E) National defense

---

Definitions:

Compromise Dividend Policy

A strategy for distributing earnings to shareholders that seeks to balance between retaining earnings for reinvestment and paying dividends.

NPV Projects

Projects that are evaluated based on the Net Present Value method, which calculates the present value of future cash flows minus the initial investment cost.

Debt/Equity Ratio

The ratio that highlights the proportional use of debt and shareholders' equity in asset financing for a company.

Stripped Common Shares

Common stock on which dividends and capital gains are repackaged and sold separately.