alleryStart learning →What term describes a public benefit whose eligibility depends on income and other resources?
AA universal cash benefit
BA matched savings benefit
CA tax advantaged benefit
DA means tested benefit
Answer & Solution
Correct answer: D. A means tested benefit
1. Some benefit programs weigh what an applicant earns and owns before granting benefits.
2. That test of income and resources is called means testing.
3. A benefit awarded on that basis is a means tested benefit.
4. A universal benefit applies no such test, which is the opposite arrangement.
5. Matched savings and tax advantaged describe account features, not eligibility screens.
_Source: FDIC Money Smart for Adults (September 2018), Module 5: Your Savings, section Assets and Income Limits_
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