Eric, Who Is 18 Years Old, Sells Magazine Subscriptions Door-To-Door

question 121

True/False

Eric, who is 18 years old, sells magazine subscriptions door-to-door for commissions. He earned $2,900 this year and he will have to pay tax on this income at his parent's tax rate.

---

Definitions:

Monetary Policy

The process by which a central bank controls the supply of money in the economy, primarily through interest rates.

Federal Reserve District Banks

The 12 regional banks in the Federal Reserve System, each serving a specific geographic area of the United States, responsible for implementing the country's monetary policies.

Recessions

A phase of limited economic decrease, with trade and industry activity lowering, usually identified by a decrease in GDP in two adjacent quarters.

Federal Reserve Notes

Paper money issued by the Federal Reserve, the central banking system of the United States, used as the country's standard currency.