Use the Following to Answer Questions

question 233

Multiple Choice

Use the following to answer questions:
Banks decide to do away with fees charged when other banks' customers use the bank's own ATM.
-(Scenario: Money and Interest Rates) Refer to Scenario: Money and Interest Rates.The demand for money will _____,and the supply of money will _____.

• A) increase;not change
• B) increase;decrease
• C) decrease;not change
• D) decrease;increase

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Definitions:

Taxable Income

The portion of an individual's or corporation's income used to determine how much tax is owed to the federal government or other taxing authorities.

Tax Liability

The total amount of tax that an individual or business is legally obligated to pay to a tax authority based on earnings or profit.

Qualifying Widow(er)

A tax filing status available to a widowed individual who has a dependent child, offering the same tax benefits as married filing jointly for two years following the spouse's death.

Dependent Child

A child who meets certain IRS criteria, thereby allowing the taxpayer to claim certain tax benefits, such as the child tax credit.