What type of expenditure is characterized by direct support of candidates where limits are set?

• A. Soft Money
• B. Hard Money
• C. Independent Expenditures
• D. Electioneering Communications

Answer: (B)

Hard money refers to contributions that are directly given to a candidate's campaign and are subject to strict limits set by the Federal Election Commission (FEC). This type of expenditure is regulated and tightly monitored, requiring detailed reporting and adherence to contribution caps to maintain transparency in the electoral process. Because hard money is used explicitly for a candidate's campaign, it allows for a clear connection between the contributions received and the political candidate supported.

In contrast, soft money represents unregulated funds used to support party activities and is not specifically allocated to individual candidates, though it can indirectly benefit their campaigns. Independent expenditures are funds spent by organizations or individuals to advocate for or against candidates without coordinating directly with the campaigns. Electioneering communications refer to broadcasts that mention a candidate, but again, do not directly support their campaign in a regulated manner.

Understanding the importance of hard money is crucial, as it represents the backbone of candidate financing in U.S. elections, ensuring that contributions are ethical, limited, and accountable.