Question

Prior to being banned in 2002 by the McCain-Feingold Act, unlimited monetary contributions that were earmarked for party-building expenses at the grassroots level or for generic party advertising were known as....

A) matching funds
B) soft money
C) hard money
D) support funds

Answer 1

B.

Step-by-step explanation:

Soft money can be defined as a money raised by party or committees that's not been regulated by the federal campaign finance. Such campaign contributions are not made within the federal law and thus are illegal to raise. These monetary contributions are used for party building activities such as electoral registration programmes. The origin of soft money dates back to the Watergate reforms.

In the given case, the monetary contributions were used for party-building expenses or generic party advertising. Thus this monetary contribution is known as soft money.

So, the correct answer is option B.