What Is a Means-Tested Program

question 20

Multiple Choice

What is a means-tested program?

• A) a program that extends benefits based on your age at retirement
• B) a program that provides benefits based on demonstrated need
• C) a program that extends benefits mostly to those who passed a skills-based test
• D) a program that provides benefits based on lifetime contributions

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Definitions:

Coupon Rate

The interest rate stated on a bond or other fixed-income security, represented as a percentage of the principal amount.

Restrictive Covenants

Clauses in a contract that limit certain actions of the parties involved, often used in employment agreements and loan documents to protect business interests.

Call Provision

A feature in certain debt instruments that allows the issuer to repay the debt before its maturity date, usually at a specified call price.

Sinking Fund

A fund established by an organization to set aside revenue over a period for the future repayment of debt.