Answer:
The answer is B. government's spending exceeds its tax revenues
Explanation:
Government budget records deficit if its spending is more than its revenue. The main source of government revenue is from tax. And government record surplus if its revenue is more than its spending.
One of the disadvantages of government budget deficit is that inflation rate will be rising. Government might spend to stimulate the economy.
Answer:
Both statements are False
Explanation:
<u>Statement a</u>
As with higher debt involved the expected return on investment is more on equity. But reducing debt up till a certain level is beneficial in that condition, but there is an ideal debt to equity ratio of 1 - 1.5, it varies upon the industry requirements and conditions.
Although the theory which states that reducing debt will reduce cost of equity and of debt is false as there is a tax benefit on debt which states that cost is always less of debt.
<u>Statement b</u>
Financial distress and bankruptcy has several reasons to occur, and one of them is borrowing.
It do not depend on the level of borrowings, whether moderate or high, borrowings demand compulsory payment in the terms of interest due, which leads to a burden on the company. This also increases the demand of shareholders.
Thus, the statement is false.
Answer: the answer is “in the black” i just did this test
Explanation:
Answer:
The correct answer would be option C, 3.
Explanation:
There are three types of grants offered by the Federal Government.
These are as follows:
1) Federal Pell Grants
2) Federal Supplemental Education Opportunity Grants
3) Work Study Programs
Federal Pell Grants provides financial aid to the students, not exclusive to their family income, serves as the prized resource among students. There are certain conditions whom a student must fulfill in order to be eligible for this grant.
Federal Supplemental Education Opportunity Grants are the financial aids given to the students who have a very low expected family contribution towards their studies.This grant is given to the most needy students.
Work Study Programs also provide the financial aid to the students by providing them part time job opportunities to meet their financial college expenses.
