Unemployment Compensation Programs Are Called Automatic Stabilizers Because Payments Increase

question 22

Multiple Choice

Unemployment compensation programs are called automatic stabilizers because payments increase during

• A)expansionary periods.
• B)recessions.
• C)both recessions and expansions.
• D)wartime only.

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Definitions:

Restricted Fund Method

An accounting method used for reporting restricted funds separately from unrestricted funds in nonprofit organizations' financial statements.

Externally Restricted Fund

Funds designated for a specific purpose by an external party or donor, limiting the fund's use by the receiving organization.

NFP Organization

A not-for-profit organization (NFP) is a type of organization that does not earn profits for its owners. All the money earned by or donated to an NFP is used in pursuing the organization's objectives and keeping it operational.

Endowment Fund

A fund where the principal amount is kept intact while the investment income is used for specific purposes, often found in non-profits and educational institutions.