Series EE Bonds

question 17

Multiple Choice

Series EE bonds

• A) pay the same rate of interest every year.
• B) may be held for up to 30 years.
• C) require the owner to pay federal income taxes each year on the appreciation.
• D) are sold in bearer form.

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Definitions:

Marginal Benefit

The additional benefit derived from consuming or producing one more unit of a good or service.

Marginal Cost

The cost involved in generating an extra unit of a product or service.

Market Economy

A type of economic system where decisions regarding investment, production, and distribution are based on supply and demand, with minimal government intervention.

Efficient

Optimally using resources in a manner that maximizes the production of goods and services without wasting them.