If You Go Through the Exercise of Preparing a Business

question 214

True/False

If you go through the exercise of preparing a business plan, only to determine that you need twice the amount of money to start the business than you have, the SBA and other expert organizations encourage you to go ahead with your plans because if you understand the market, you can use the revenues you accrue to make up the shortfall.

Understand the relationship between the price of government bonds and market interest rates.

Grasp the significance of the deposit expansion multiplier in banking.

Recognize various monetary policy tools used by the Federal Reserve.

Assess the impact of changing reserve requirements on the banking system and money supply.

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Definitions:

Progressive Tax System

A tax that increases as income increases; the percentage or rate increases.

Income

The money received, especially on a regular basis, for work or through investments.

Head of Household

A filing status for individual U.S. taxpayers who are unmarried and pay more than half the cost of maintaining a home for themselves and a qualifying person.

Total Income

The sum of all earnings or revenues received by an individual or organization, before any deductions or taxes.