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What is the difference between a bid and a budget in paid search?

The bidding options available are...
Views
Conversions
Conversion Value
Clicks
A budget is...
The amount you're willing to pay for your ad campaign, for each day
The amount you're willing to spend for a visit to your site.
The cost of the ads
Which of the following is NOT true about budgets?
Your spend will never go above the daily budget
Standard delivery method means you can evenly spend your budget over overtime
Accelerated delivery method means once that new day starts, Adwords spends the budget as quickly as possible
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