What Is the Average Tax Rate

question 79

Multiple Choice

What is the average tax rate?

• A)It is calculated by dividing the total income taxes paid by the total income.
• B)It is the extra tax you have to pay on top of your regular income tax.
• C)It is the tax rate levied on your last dollar of taxable income.
• D)33%

---

Definitions:

United Nations

An international organization founded in 1945 dedicated to maintaining international peace and security, developing friendly relations among nations, and promoting social progress.

Letter of Credit

A financial document issued by a bank guaranteeing the payment of a buyer's obligations to a seller within a specific time frame and under certain conditions.

Buyer's Bank

Buyer's bank refers to the financial institution that represents the purchaser in a transaction, often involved in issuing or confirming payment instruments like letters of credit.

Seller

An individual or entity that offers goods or services in exchange for payment or other compensation.