The United States Taxes the Domestic and Remitted Foreign Earnings

question 45

Multiple Choice

The United States taxes the domestic and remitted foreign earnings of U.S. based MNEs no matter where the earnings occurred. This is an example of a/an ________ approach to levying taxes.

• A) worldwide
• B) territorial
• C) neutral
• D) equitable

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Definitions:

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.

Loans

Money, goods, or services provided to an individual or entity with the expectation of repayment over time with interest.

Interest Rates

The cost of borrowing money, typically expressed as an annual percentage of the loan amount.

Savers

Individuals or entities that set aside a portion of their income for future use, often by depositing it in financial accounts.