GST/HST Differs from Other Sales Taxes in That -

question 9

Multiple Choice

GST/HST differs from other sales taxes in that -

• A)it applies at all levels of sales
• B)the same rate applies to all goods and services sold
• C)all goods and services have GST/HST applied
• D)GST/HST is applied in the same way as other sales taxes

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Definitions:

Currency

A system of money in general use in a particular country or in the international market for trade and finance.

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, as mandated by central banking authorities to ensure banking system stability.

Tight Monetary Policy

A central bank policy aimed at reducing inflation and slowing down the growth in the money supply by raising interest rates and other measures.

Required Reserve Ratio

The fraction of deposits that banks are required by law to keep on hand as reserves or with the central bank.