Steve Takes $500 from His Paycheck and Uses It to Purchase

question 119

Multiple Choice

Steve takes $500 from his paycheck and uses it to purchase U.S. Savings Bonds. Based on this information:

• A)Steve's saving has increased by $500.
• B)Steve's saving has decreased by $500.
• C)Steve has a capital gain of $500.
• D)Steve's wealth is unchanged.

---

Definitions:

Selling Price

The amount of money for which a product or service is sold to the purchaser.

Trade Discount

A reduction on the list price granted by a seller to a buyer based on the quantity purchased or the buyer's trade status.

Net Price

The actual price that is paid for a product or service after deducting any discounts, rebates, or other adjustments.

Discount

A reduction applied to the regular price of goods or services, often used as a sales strategy.