Why Are Some Safety Net Programs Referred to as Entitlements

question 65

Multiple Choice

Why are some safety net programs referred to as entitlements?

• A) because benefits are distributed automatically to citizens who qualify, based on a set of guidelines
• B) because they are benefits available only to the working poor in the United States
• C) because they are benefits funded through the Title 9 section of the 1965 Civil Rights Act
• D) because they are benefits that are distributed on a case-by-case basis to select citizens in extreme need
• E) because they are benefits that one earns by working, and thus the person is entitled to them

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Definitions:

Accounts Payable Turnover

A financial efficiency ratio that measures how quickly a firm pays off its suppliers by dividing total purchases by average accounts payable.

Times

This term in a financial context often relates to ratios, such as the "times interest earned" ratio, which measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.

Compensating Balance

A minimum account balance that a borrower must maintain as a condition for a bank loan, often to compensate the bank for extending credit.

Interest Rate

Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.