Which term describes funds that last five years, have limited use, and cannot pay for new obligations?

• A. Closed
• B. Deobligated
• C. Expired
• D. Available

Answer: (C)

These funds are described by the period of availability: a five-year appropriation can be obligated only within those five years. Once that window ends, the funds are expired, meaning they can no longer be used to incur new obligations. They may still be used to liquidate or adjust obligations that were already incurred during the period, but they cannot pay for any new ones. Deobligated funds refer to removing an existing obligation, not the end of the availability period. Available funds are still within the period and can incur new obligations, and “closed” isn’t the standard term for this status. Therefore, the correct term is expired.