Question

Q1:

The following tax table represents a ____________________________ tax schedule

Income	Tax Payment
$100	$45
200	100
300	175
400	300

A) lump-sum

B) constant rate

C) regressive

D) progressive

E) proportional

Q2:

Assets		Liabilities
Required reserves	$ 20,000	Checkable deposits	$100,000
Excess reserves	0
Loans	80,000
Total	$100,000	Total	$100,000

Above Exhibit 15-3: Balance sheet of Tucker National Bank

Assume a depositor makes a new deposit of $125,000. What is the amount of new loans that Tucker Bank can now make?

A) $100,000

B) $20,000

C) $120,000

D) $80,000

E) Tucker Bank is all loaned up and can't make any new loans.

Answer 1