Which of the Following Would Be Considered Part of the Underground

question 140

Multiple Choice

Which of the following would be considered part of the underground economy?

• A)selling subway tokens
• B)tax avoidance
• C)deducting housing interest when figuring your income taxes
• D)sales of alcohol and cigarettes
• E)paying by credit card to avoid writing a check

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Definitions:

Par Value

The nominal value of a bond or the stated value of stock as documented in the company's charter, frequently utilized in official paperwork.

Ask Price

The lowest price a seller is willing to accept for an asset in the financial markets; it contrasts with the bid price, which is the highest price a buyer is willing to pay.

Coupon Bond

A type of bond that provides periodic interest payments to its holder, based on a fixed interest rate (coupon rate) until its maturity, at which point the principal amount is repaid.

Accrued Interest

The interest that has accumulated on a bond since the last interest payment was made, which the buyer of the bond must pay to the seller if the bond is bought between interest payment dates.