Which Type of Tax Was Expanded in 2006 to Fund

question 31

Multiple Choice

Which type of tax was expanded in 2006 to fund public education?

• A) sin tax
• B) excise tax
• C) franchise tax
• D) severance tax

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Definitions:

Preferred Share

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Discount Rate

The interest rate that the Federal Reserve charges commercial banks for loans, or a rate used in discounted cash flow analysis to determine the present value of future cash flows.

Compounded Semi-annually

Interest calculation method where the interest is added to the principal twice a year, leading to a growth in the amount at a faster rate than simple interest.

Compounded Quarterly

This term refers to the calculation and addition of interest to the principal sum of a deposit or loan on a quarterly basis.