Which of the Following Statements Is True of Borrowing Money

question 1

Multiple Choice

Which of the following statements is true of borrowing money?

• A)Bonds are financial instruments issued by federal governments and bought by state governments.
• B)The power to borrow money for the long term does not require any voter approval.
• C)In most cases, revenue bonds require voter approval.
• D)State and local bonds are attractive to investors because the interest they earn is exempt from federal income tax.
• E)Private businesses can borrow money at a lower interest rate than state and local governments can.

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Definitions:

Negotiation

The process by which two or more parties communicate and ideally reach an agreement or compromise on a matter of mutual interest.

National Output

The total value of all goods and services produced within a country's borders in a given time period, often referred to as Gross Domestic Product (GDP).

Consumer Goods

Goods produced and purchased for personal or household consumption rather than for manufacturing or resale.

Competitive System

An economic system where multiple businesses or entities vie for the same market share, promoting innovation and consumer choice.