Ultimately, the Real Burden of Paying for Social Security Benefits

question 46

Multiple Choice

Ultimately, the real burden of paying for Social Security benefits will be paid for by

• A) taxes levied on workers.
• B) Social Security trust fund bonds.
• C) new federally issued Treasury bills.
• D) a new tax levied on businesses.

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Definitions:

Bond Indenture

A contract that spells out the provisions of the contract between the corporation and bondholder.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money, or the amount a lender charges for the borrowing of money.

Contract Rate

The agreed-upon interest rate specified in a loan or bond agreement.

Market Rate

The current price at which an asset or service can be bought or sold in a given market.