A speculative spending unit is a spending unit
A)where the anticipated revenues significantly exceed the anticipated payment obligations.
B)is one in which the funds coming in may potentially fall short of the payment outflows if there is an increase in interest rates.
C)must continuously increase its outstanding debt to meet its current obligations or payments.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

A speculative spending unit is characterized by the potential for incoming funds to fall short of outgoing payments, especially if there's an increase in interest rates. This creates a speculative or risky financial situation.

A Speculative Spending Unit Is a Spending Unit