The Health Care Reform Debate in 2009 Showed That When

question 71

Multiple Choice

The health care reform debate in 2009 showed that when a party controls the U.S.House,the U.S.Senate,and the White House:

• A) major legislation can be passed quickly and without controversy
• B) the minority party will cooperate and work with those in power to have input in the legislative process
• C) the U.S. House presents the most difficult challenge in the process because it is such a large body
• D) there are still significant compromises that must be made among fellow party members in order to pass major legislation
• E) that it is the White House and not Congress that ultimately gets what it wants

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Definitions:

Interest Rate Risk

Arises from the fact that bond prices decline when interest rates rise. Under these circumstances, selling a bond prior to maturity will result in a capital loss; the longer the term to maturity, the larger the loss.

Real Return Bonds

Bonds issued by the federal government that offer inflation protection to investors.

Income Bonds

These are a type of debt security where interest payments depend on the issuer's earnings, meaning if the issuer's earnings are insufficient, the bondholders may not receive interest payments.

Regular Bonds

Standard debt securities issued to investors that pay fixed or floating interest rates until maturity, where the principal amount is then repaid.