Which of the Following Is True of the Median Income

question 48

Multiple Choice

Which of the following is true of the median income test?

• A) If a family has median family income equal to the state's median family income, the debtor does not qualify for a Chapter 7 bankruptcy.
• B) If a family has median family income below the state's median family income, the debtor is subject to the "means" test.
• C) If a family has median family income below the state's median family income, the debtor automatically qualifies for a Chapter 7 bankruptcy.
• D) A debtor's debts are not discharged if the family median income is more than the state's median family income.

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Definitions:

Bank Runs

The rapid withdrawal of deposits by customers from a bank or financial institution due to fears of insolvency.

U.S. Banking System

The U.S. Banking System refers to the structure and institutions involved in providing financial services, including savings accounts, loans, and other fiscal transactions, within the United States.

Money Supply

The total amount of money available in an economy at a specific time, including cash, deposits, and other liquid assets.

Medium of Exchange

is an intermediary instrument used to facilitate the sale, purchase, or trade of goods and services between parties.