When You Open a Checking Account at Bank of America,Bank

question 71

Multiple Choice

When you open a checking account at Bank of America,Bank of America

• A)has more reserves and more excess reserves.
• B)has more reserves,but excess reserves remain unchanged.
• C)has more deposits and less in excess reserves.
• D)has more deposits,but excess reserves remain unchanged.

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Definitions:

Proportional

Proportional pertains to a relationship or ratio where changes in one quantity correspond directly with changes in another.

Excise Taxes

Taxes paid on specific goods and services, such as tobacco and fuel, intended to raise revenue and discourage consumption of these items.

Progressive

relates to a taxation system where the tax rate increases as the taxable base amount increases, often aimed at redistributing income to achieve a more equitable society.

Corporate Income Tax

A tax imposed on the net income of corporations, calculated on the basis of the business's profit, contributing to government revenues.