Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true

• A) National defense represents the single largest portion of the federal budget.
• B) Public assistance accounts for the largest portion of the federal budget.
• C) Social insurance accounts for the largest portion of the federal budget.
• D) National defense spending has declined to account for the smallest portion of the federal budget.
• E) Safety net spending is virtually absent from the federal budget.

---

Definitions:

Prepaying Bonds

The action of repaying the principal of a bond before its maturity date, often as a way to manage debt or save on interest costs.

Outstanding Bonds

Bonds issued by an entity that are currently not redeemed and are in the hands of investors.

Semiannual Interest

Interest that is calculated and paid twice a year on investments or loans.

Par Value

The nominal or face value of a stock or bond, which is the amount stated on the certificate or instrument.