A Financial Intermediary That Functions as an Escrow Service

question 79

Multiple Choice

A financial intermediary that functions as an escrow service

• A)holds the buyers payment until the goods arrive and the buyer approves the payment.
• B)holds the buyers payment until appropriate state taxes are paid.
• C)holds the goods until it receives payment from the buyer.
• D)holds the goods until appropriate state taxes are paid.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of earnings, and other factors.

Tax Base

The Tax Base is the total amount of assets, income, or other taxable items upon which a government levies taxes.

Tax Liability

The total amount of tax owed by an individual or a corporate entity to tax authorities.

Tax Rate Structure

The way tax rates progress from low to high based on income brackets, affecting how much tax individuals or entities owe.