Percy Peterson Received a Grant from the Department of Education

question 15

Multiple Choice

Percy Peterson received a grant from the Department of Education for a special research project on education. He received $500 per month for the period May 1 to December 31. Percy is not a candidate for a degree. fte amount of the fellowship he may exclude from income for the tax year is:

• A) $0
• B) $1,600
• C) $2,400
• D) $3,000
• E) $4,000

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Definitions:

Asset

An item of value owned by an individual or corporation, expected to provide future benefit or revenue.

Reserve Requirement

A regulation set by central banks requiring commercial banks to hold a certain amount of their deposits as reserves, either as cash in their vaults or as deposits with the central bank, to ensure liquidity.

Money Multiplier

The ratio of the increase in total money supply generated from an initial deposit in a banking system.

Compliance

The act of conforming to or following rules, regulations, standards, or laws.