The Largest Source of Receipts for the Federal Government Is

question 14

Multiple Choice

The largest source of receipts for the federal government is

• A) corporate income taxes.
• B) personal income taxes.
• C) capital gains taxes.
• D) Social Security taxes.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.

Preferred Stock

A type of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with dividends that must be paid out before dividends to common stockholders.

Rate Of Return

A measure of the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Constant Growth

A model assuming a company's dividends will continue to grow at a consistent rate indefinitely.