A Major Concern with the Social Security Trust Fund Is

question 39

Multiple Choice

A major concern with the Social Security trust fund is that:

• A) Surpluses for Social Security are too large
• B) The Federal government buys too many government securities
• C) Costs for administering the fund are greater than the current revenue
• D) The fund will exhausted in a couple of decades

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Definitions:

Compounded Semi-annually

This refers to the process of calculating interest on an investment or loan, with the interest being added to the principal balance twice a year, typically every six months.

Strip Bond

A bond where both the principal and regular interest payments have been separated and are sold individually.

Yield Rate

The rate of return on an investment over a specified period, expressed as a percentage, considering both interest and dividends.

Compounded Semi-annually

When interest is compounded semi-annually, it is calculated and added to the principal amount twice a year.