The Average Tax Rate Is Defined as

question 199

Multiple Choice

The average tax rate is defined as

• A) total tax due/change in taxable income.
• B) total tax due/total taxable income.
• C) change in taxes due/change in taxable income.
• D) change in taxes due/total taxable income.

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Definitions:

T-bond Futures

Futures contracts that obligate the buyer to purchase Treasury bonds at a specified price at a future date.

Initial Margin

The minimum amount of funds required to be deposited in a margin account before trading on leverage to ensure that the account can cover potential losses.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to cover potential losses.

T-bill Rate

The yield or interest rate on Treasury bills, which are short-term debt securities issued by the U.S. government.