A Comparison of an Interest-Bearing Checking Account and a Savings

question 131

Multiple Choice

A comparison of an interest-bearing checking account and a savings account reveals that:

• A)while a NOW account pays interest,a savings account does not.
• B)a NOW account must be held to maturity,while funds in a savings account are available on demand.
• C)deposits in checking accounts are technically demand deposits,but deposits in savings accounts are time deposits.
• D)interest earned on NOW accounts is tax deductible,while interest earned on passbook savings accounts is taxable income.

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Definitions:

Gerrymandering

The manipulation of electoral constituency boundaries to favor one party or class, often criticized for undermining democratic principles.

Black Electoral Participation

The involvement of African American citizens in the electoral process, including voting and holding public office.

Poll Tax

A tax levied as a fixed sum on every liable individual without reference to income or resources, historically used to disenfranchise voters, particularly African-Americans in the South.

Ras Baraka

The Mayor of Newark, New Jersey, known for his involvement in community development and politics.