Short-Term Loans Which Are Backed by the Taxing Power of the Governmental

question 32

Multiple Choice

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:

• A) Tax anticipation notes.
• B) Inter-fund loans.
• C) Other financing sources.
• D) Appropriation loan.

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Definitions:

Demand Determined

A situation where the quantity and price of goods or services are decided by consumer demand rather than other factors.

Labor Force

The total number of people, including both the employed and those actively seeking employment, available to work in an economy.

Investment Spending

Expenditures on new physical capital, such as buildings, machinery, and equipment, intended to increase future production.

Great Depression

A severe worldwide economic depression that took place during the 1930s, marked by high unemployment and financial instability.