Match Each Term with the Correct Statement Below

question 49

Multiple Choice

Match each term with the correct statement below.
-A tax rate that remains the same at all levels of the tax base.

• A)Average tax rate
• B)Effective tax rate
• C)Horizontal equity
• D)Marginal tax rate
• E)Progressive rate structure
• F)Proportional rate structure
• G)Regressive rate structure
• H)Tax avoidance
• I)Tax evasion
• J)Vertical equity

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Definitions:

Leverage

The use of borrowed money to supplement existing funds for purposes of investment.

Bank Investments

Financial assets purchased or held by banks, including bonds, stocks, real estate, and other securities, with the aim of generating income or capital appreciation.

Leverage Ratio

The ratio of assets to bank capital.

Reserves

Assets held by a bank or financial institution, often to meet regulatory requirements or as a safeguard against potential crises.