Balanced Budget and Commerce Quiz
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Questions and Answers

What is a balanced budget?

  • An annual budget with surplus revenues exceeding expenditures
  • An annual budget where expenditures perfectly offset revenues
  • An annual budget with deficit expenditures exceeding revenues
  • An annual budget where revenues perfectly offset expenditures (correct)

    • What is the primary source of profit for a bank?

  • Charging more interest on loans than paid on deposits (correct)
  • Issuing new loans at high interest rates
  • Investing in government securities
  • Service charges on deposits and withdrawals

    • What does a company do when it accepts deposits and issues new loans?

  • Operate as a government entity
  • Engage in banking activities (correct)
  • Act as a non-profit organization
  • Provide insurance services

    • What happens in a budget with deficit expenditures exceeding revenues?

    <p>There is a shortfall in funding</p> Signup and view all the answers

    How does a balanced budget impact financial stability?

    <p>It contributes to financial stability</p> Signup and view all the answers

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