A Participant, Who Is Age 38, in a Cash or Deferred

question 27

Multiple Choice

A participant, who is age 38, in a cash or deferred arrangement plan [§ 401(k) ] may contribute up to what amount in 2012?

• A)$12,000.
• B)$16,500.
• C)$17,000.
• D)$17,500.
• E)None of the above.

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Definitions:

Interest Rate

Lenders require a payment, portrayed as a percentage of the principal, from borrowers for the use of their assets.

Loanable Funds

The market where savers supply funds for loans to borrowers, often facilitated by financial institutions, impacting the interest rates and investment in the economy.

Government Budget Deficit

The financial situation where a government's expenditures exceed its revenues within a specific fiscal period, leading to borrowing or debt accumulation.

National Saving

The total income in an economy that remains after deducting consumption expenditures and government spending.