The Percentage of Total Before-Tax Income Received by the Lowest

question 143

Multiple Choice

The percentage of total before-tax income received by the lowest 20 percent of households in 2009 was about:

• A) 1.8 percent.
• B) 3.4 percent.
• C) 8.7 percent.
• D) 22.9 percent.

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Definitions:

Convertible Bond

A bond that allows the holder to exchange it for a specific number of the issuer's stock shares at chosen times throughout its duration, typically at the holder's option.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits.

Warrant

A financial instrument that gives the holder the right, but not the obligation, to purchase a company's stock at a specified price before a certain date.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a specified price within a certain period.