Because of the Length of the Budget Cycle, at Any

question 111

Multiple Choice

Because of the length of the budget cycle, at any given time, the federal government is discussing

• A)one budget.
• B)two budgets.
• C)four budgets.
• D)three budgets.
• E)five budgets.

---

Definitions:

Coupon Bond

A debt security that pays the holder a fixed interest rate (the coupon) periodically until maturity, at which point the principal is repaid.

Basis Point

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of 1%.

Bond Prices

The cost or value of a bond, which can fluctuate based on interest rates, credit quality of the issuer, and other factors.

Yields

Yields refer to the earnings generated and realized on an investment over a particular period, expressed as a percentage based on the investment’s cost, its current market value, or its face value.