Currently,the Strategy of the Social Security System Is to Run

question 25

Multiple Choice

Currently,the strategy of the Social Security system is to run surpluses to prepare for the retirement of the baby boom generation.The effectiveness of this strategy is being undermined because

• A)rising interest rates make it more expensive for Social Security to borrow.
• B)inflation is reducing the value of the Social Security surplus.
• C)the trust fund is being used to finance current government expenditures,and the bonds held by the trust fund are an obligation of the U.S.Treasury.
• D)the federal budget surplus reduces the Social Security surplus.

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Definitions:

Budgeted Income Statement

A forecasted financial statement estimating a company's revenues, expenses, and net income for a future period based on a set of assumptions.

Forecasted Data

Predictions about future events, trends, or financial performances, often based on analysis of historical data and market research.

Budgeting Benefits

Advantages arising from planning and managing income and expenses, including better savings, reduced debt, and improved financial decision-making.