The Table Below Shows the Tax Brackets for Different Income

question 7

Multiple Choice

The table below shows the tax brackets for different income groups in a country:

-Refer to the table above.If Jack has an annual income of $50,000 and Jill earns $77,500,which of the following is true?

• A) Jack and Jill pay an equal amount of tax.
• B) The average rates of tax paid by Jack and Jill are equal.
• C) The marginal tax rate for Jack is higher than the marginal tax rate for Jill.
• D) Jack and Jill fall in the same tax bracket.

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Definitions:

Time Deposits

A type of bank deposit that has a specified time of maturity and typically offers a higher interest rate than a savings account, with penalties for early withdrawal.

Reserve Requirements

Reserve requirements refer to the amount of funds that a bank must hold in reserve against deposits made by customers, set by central banks to ensure liquidity.

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum, often held in the central bank to lend to other banks or as currency in circulation.

Required Reserves

The minimum amount of funds that a bank is required to hold in reserve against deposits, as mandated by central banking regulations.