In a Currency System Where One Country Can Issue Its

question 32

Multiple Choice

In a currency system where one country can issue its currency only against reserves of a specified foreign currency,the system is a:

• A)pegged system.
• B)floating system.
• C)currency board arrangement.
• D)fixed peg arrangement.

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Definitions:

Tax Liability

The total amount of tax that an individual or business owes to the government, based on their income or revenue.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the percentage of tax applied to your income for each tax bracket in which you qualify.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), showing the percentage of income or spending that goes to taxes.

Income Tax Liability

The amount of tax that an individual or entity is legally obligated to pay to a tax authority, based on their income.