Direct Financing Involves the Use of Securities That Represent Specific

question 26

True/False

Direct financing involves the use of securities that represent specific contracts between savers and borrowers.

---

Definitions:

Negative Income Tax

A system of income support that supplements the income of individuals whose earnings are below a certain level, effectively a form of guaranteed minimum income.

Tax Liability

The total amount of tax that an individual or business is obligated to pay to the government.

Income Subsidy

A government payment to individuals or families that augments their income, intended to help them afford essential goods and services.

In-Kind Transfers

Non-cash government assistance provided to individuals or groups, such as food stamps, housing, and healthcare services.