BUISENESS MANAGEMENT
TAXES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Education has no effect on a person’s potential earning power.
|
|
|
A person with a professional degree is likely to earn at least four times as much per year as a person who did not complete high school.
|
|
|
Attaining a higher educational level affects the earning potential only for people over 40 years old.
|
|
|
Attaining a higher education level decreases potential earning power.
|
Detailed explanation-1: -Which statement best describes the relationship between a person’s educational level and that person’s potential earning power? A person with a profession degree is likely to earn at least four times as much per year as a person who did not complete high school.
Detailed explanation-2: -The Fed implements monetary policy primarily by influencing the federal funds rate, the interest rate that financial institutions charge each other for loans in the overnight market for reserves. Fed monetary policy actions, described below, affect the level of the federal funds rate.
Detailed explanation-3: -The Fed controls the supply of money by increasing or decreasing the monetary base. The monetary base is related to the size of the Fed’s balance sheet; specifically, it is currency in circulation plus the deposit balances that depository institutions hold with the Federal Reserve.
Detailed explanation-4: -Your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow. Different loan products and lenders will have different DTI limits.