Means Tested Government Programs

question 67

Multiple Choice

Means tested government programs:

• A)define eligibility for benefits based on recipients' income.
• B)are meant to target resources toward those who need them most.
• C)can create perverse incentives.
• D)All of these are true.

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Definitions:

Private Loan

A loan sourced from a private entity or individual, as opposed to a government or public lender.

Accrued Interest

Interest that has been incurred but not yet paid, typically relating to bonds or loans.

Pay Off

To completely settle a debt or an obligation.

Compounded Quarterly

A method of calculating interest where the interest is added to the principal balance four times a year.