If the Government Spends More Than It Takes In, We

question 16

Multiple Choice

If the government spends more than it takes in, we have a budget _____.

• A) shortage
• B) deficit
• C) scarcity
• D) insufficiency

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Definitions:

American Options

Options that can be exercised at any time up to the expiration date.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Put Option

An option contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Time to Expiration

The duration remaining until the expiration date of a derivative contract, such as an option or futures contract, which represents the time period within which the contract can be executed.