An Example of How Financial Intermediaries Can Assist in Shifting

question 15

Multiple Choice

An example of how financial intermediaries can assist in shifting an individual's consumption forward in time is:

• A) providing a line of credit.
• B) opening a passbook account.
• C) starting a life insurance policy.
• D) starting an auto insurance policy.

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Definitions:

Corporate Income Taxes

Taxes imposed on the net income (profits) of corporations by the government.

Property Taxes

Government-imposed charges on property, calculated from the real estate's worth, intended to finance community facilities and public infrastructure.

Payroll Taxes

Payroll Taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Local Finance

Financial activities, policies, and management practices that pertain to local government units, including budgeting, revenue collection, and expenditure.