Which of the following statements about the financing of unemployment insurance benefits is true?
A) Each state maintains its own trust fund at the state level, and the state pays qualified beneficiaries from the trust fund the state administers.
B) While experience rating is used for other types of insurance, it is not used in unemployment insurance.
C) Part of an employer's contribution is used for administrative expenses, to fund extended benefits, and to maintain a loan fund that can be drawn upon if the state's account is depleted.
D) Most state programs are financed primarily by payroll taxes paid by employees.
Question 2
Which of the following statements about the problems and issues of unemployment insurance programs is (are) true?
I. Many state programs are inadequately financed.
II. Only a small portion of the total unemployed receive benefits at any time.
A) I only
B) II only
C) both I and II
D) neither I nor II
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