Which Tax Is Paid on the Value of Assets (E

question 31

Multiple Choice

Which tax is paid on the value of assets (e.g.,stocks) held by a person or family?

• A) sales tax
• B) capital gains tax
• C) wealth tax
• D) excise tax

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Definitions:

Real Interest Rate

The inflation-adjusted interest rate, representing the actual borrowing cost and the genuine earnings for savers.

Real Value

The worth of a good or service adjusted for inflation, showing its true purchasing power.

Output

The amount of goods or services produced by a company, country, or economic system within a certain period.

Inflation Tax

An implicit tax that results from the erosion of purchasing power due to inflation, effectively reducing the real value of money held by the public.