An Individual Made $48,000 Last Year Paying $12,480 in Taxes

question 38

Multiple Choice

An individual made $48,000 last year paying $12,480 in taxes.What is the taxpayer's average tax rate?

• A)17.4%
• B)22.1%
• C)26.0%
• D)30.9%

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Definitions:

Central Bank

A national financial institution that provides financial and banking services for its country’s government and commercial banking system, and implements the government’s monetary policy.

Regulating Banks

The process of establishing and enforcing rules and standards that govern the banking industry to ensure stability and protect consumers.

Banking System

The banking system consists of a network of banks and financial institutions that provide financial services, including managing deposits, lending, and currency exchange.

Federal Reserve Board

The Federal Reserve Board is the governing body of the Federal Reserve System, the central banking system of the United States, responsible for setting national monetary policy.