What Was the Effect of the Supreme Court's Ruling in the Citizens

question 2

Multiple Choice

What was the effect of the Supreme Court's ruling in the Citizens United case?

• A)Candidates are now free to spend any amount of their own personal funds on a campaign.
• B)Corporations and unions must create separate PACs to solicit funds from stockholders or union members for political purposes.
• C)Soft-money contributions to federal candidates are strictly limited.
• D)Corporations and unions can now spend money directly for political purposes.

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Definitions:

Perpetuity

A type of annuity that pays a consistent amount indefinitely, with no end date.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, typically expressed in years.

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, often measured by the standard deviation of historical daily price changes.