When Family Incomes Are Ranked from Lowest to Highest, the Middle

question 97

Multiple Choice

When family incomes are ranked from lowest to highest, the middle income is known as the

• A)median income
• B)mean income
• C)means-tested income
• D)official poverty level
• E)transfer income

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Definitions:

Interest Accrual

The process by which interest is accumulated over time on borrowed funds, to be paid at a later date.

Redemption

The process of paying off or buying back a security, such as a bond, at its face value or at a specified price before maturity.

Effective-Interest Amortization

A method of calculating the amortized cost of a bond or loan based on the periodic interest rate applied to the carrying amount, resulting in an equal interest expense over the period.

Bonds

Fixed-income investments representing loans to borrowers such as corporations or governments, paid back with interest over time.