Satish,age 11,is a Dependent of His Parents

question 122

Multiple Choice

Satish,age 11,is a dependent of his parents.His only source of income in 2015 is $3,000 of interest income on bonds given him by his grandparents.Satish's marginal rate is 10%,and his parent's marginal rate is 28%.Satish's tax is

• A)$357.
• B)$195.
• C)$546.
• D)$300.

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Definitions:

Absolute Purchasing Power Parity

A theory that suggests that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Forward Exchange Rates

Exchange rates determined today for currencies to be exchanged at a future date, used in hedging and speculation.

Spot Rates

The current market price of a financial instrument, commodity, or currency for immediate delivery and payment.

Absolute Purchasing Power Parity

A theory that states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.