The Amount the Government Is Permitted to Borrow Is Referred

question 90

Multiple Choice

The amount the government is permitted to borrow is referred to as

• A)a tariff.
• B)discretionary spending.
• C)cap and trade.
• D)the budget.
• E)the debt ceiling.

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Definitions:

Contract Rate

The agreed-upon price or interest rate outlined in a contract for services or loans.

Installment Notes

A form of debt that requires the borrower to make scheduled periodic payments of principal and interest over a set period until the debt is paid off.

Interest

The cost of borrowing money or the return earned on an investment, typically expressed as an annual percentage of the principal.

Principal

The original sum of money borrowed in a loan, or the amount of the loan that has not yet been repaid, excluding interest.