When Congress Does Not Pass the Necessary Budget Resolutions by the Time

question 1

Multiple Choice

When Congress does not pass the necessary budget resolutions by the time the new fiscal year starts,they need to pass a ______ in order to keep agencies operating.

• A)budgetary extension
• B)continuing resolution
• C)continuing extension
• D)emergency budgetary declaration

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Definitions:

Zero Correlation

A statistical term indicating no linear relationship between two variables, meaning one variable does not predict the movement of the other.

Equity Tranche

The portion of a structured finance instrument that is first to absorb losses and last to receive payments.

Default

Failure to fulfill a legal obligation, especially failure to meet a debt payment or not fulfilling a contract condition.

Collateralized Debt Obligation

A complex structured finance product that pools together cash flow-generating assets and repackages them into tranches for sale to investors.