1. The fed is the federal reserve of the United States of America. The fed is the central bank of the country.
The two tools used by the fed
- Interest rate
- open market operations
2. Credit is created when the money supply of a country is increased.
How credit can be negative
- If it pushes the borrower to be in debt.
- If it becomes impossible to pay back credit.
- If the borrower is unable to fulfill the need for the credit.
How credit can be positive
- If it helps to finish production quickly.
- If it leads to an increase in income.
- If it cause expansion in the production of goods and services.
3. What is inflation?
This is the increase in prices in an economy and the fall in the value of money of a country.
What is deflation?
This is a fall in the general price level that is in an economy.
What is recession?
This is a period of temporary economic fall in a country. Where economic activities and trade is reduced.
What is depression?
This is a period of long term down turn in the economy of a nation. This is a period where the nation faces low income and unemployment, increased bankruptcy and poverty.
4. The way that deduction affects tax liability is that it reduces the taxable income. It works by causing reductions in the income that is to be taxed.
5. The purpose of the W-4 form
The purpose of this form is to let the employers know what they have to deduct from your salary as the federal tax.
The purpose of the W-2 form
The purpose of this form is to show information that concerns the amount of income that an employee has earned.
It shows the taxes that have been withheld from the paycheck of a person as well as other benefits.
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