Funds That Are Given by Congress to States and Localities

question 43

Multiple Choice

Funds that are given by Congress to states and localities and that are earmarked by law for specific categories are known as

• A)categorical grants-in-aid.
• B)block grants.
• C)stovepipe grants.
• D)devolutionary grants.
• E)reverse remunerations.

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Definitions:

Capital Gain Distributions

The payment of proceeds realized from the sale of an asset held in a mutual fund or ETF, distributed to investors as a taxable distribution.

Income Distributions

Payments, often periodic, received by investors from assets they own, such as dividends from stocks or interest from bonds.

Rate of Return

The increase or decrease in the value of an investment during a set period, represented as a proportion of the investment's original price.