A Recognizable Signal of Fiscal Stress Is

question 14

Multiple Choice

A recognizable signal of fiscal stress is:

• A) Total revenues from own sources increasing as a percent of total revenues for all sources.
• B) Increasing population.
• C) Declining property values.
• D) An increasing ratio of total revenues to total expenditures.

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Definitions:

Interest Rate Swaps

Financial derivatives contracts in which two parties exchange interest rate payments, typically one fixed rate for one floating rate, on a specific nominal amount.

Interest Rate Volatility

The extent to which interest rates fluctuate over a particular period of time.

Borrowing Costs

Expenses incurred by an entity for borrowing funds, including interest, fees, and other charges associated with the issuance of debt.

Option Contract

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price within a certain period of time.