One Study of the Distribution of Wealth Indicates That the Bottom

question 40

Multiple Choice

One study of the distribution of wealth indicates that the bottom 40 percent of households hold 1 percent or less of total marketable wealth in the United States. Which of the following people is most likely to be in the bottom 40 percent?

• A) Ann is 29 years old, earns $120,000 a year, has no financial assets, but still has student loans of $4,000.
• B) Betty is 29 years old, earns $40,000 a year, has $80,000 in a savings account, and has credit card debt of $4,000.
• C) Carol is 69 years old, is disabled, and is living on Social Security and dividends from her $500,000 of mutual funds. She has no debt.
• D) Debra is 45 years old, and the only money she gets is $40,000 of rental payments from an apartment building she owns that is worth $250,000. She owes the bank $50,000.

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Definitions:

DACA

Deferred Action for Childhood Arrivals, a U.S. immigration policy allowing individuals who came to the U.S. as children and meet several guidelines to receive a renewable two-year period of deferred action from deportation and become eligible for a work permit.

President Donald Trump

The 45th President of the United States, who served from January 20, 2017, to January 20, 2021, known for his business background and controversial policies.

President Barack Obama

The 44th President of the United States, serving two terms from 2009 to 2017, known for being the first African American to hold the office.

Fifth Amendment

A provision in the U.S. Constitution that guarantees several protections for individuals, including against self-incrimination and double jeopardy, and ensures due process.