Which of the Following Statements Is TRUE

question 268

Multiple Choice

Which of the following statements is TRUE?

• A) Government spending as a percent of total national income has continuously decreased since the 1950s.
• B) Transfer payments are money payments made by the government for which no goods or services are currently received.
• C) Education is the largest category of federal government expenditures.
• D) Transfers in kind include Welfare, Social Security, and unemployment insurance benefits.

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Definitions:

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other assets.

Financial Market

Platforms or systems where financial instruments like stocks, bonds, currencies, and derivatives are bought and sold.

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically used by corporations, municipalities, states, and governments to finance projects and operations.

Stock Exchange

A stock exchange is a marketplace where securities, such as stocks and bonds, are bought and sold, facilitating capital exchange between investors and companies.