Market researchers often report disposable income. This is your income after tax deductions. Your gross income is $4,000 per month. Your federal tax is 10%, state tax is 7%, city tax is 3%, and you pay 7% to social security. What is your monthly disposable income? A) $2,000
B) $2,920
C) $3,092
D) $4,022

B.) 2,920

Explanation:

Grants is the correct answer.

Financial aid iskind of a scholarship grant to the students of the college to meet their expenses. This financial aid is mostly provided inthe United States for post-secondary education students.

Further explanation:

Types of financial aid are:

1. Federal Types of Financial Aid:

(i) Grant programs

(ii) Work-study programs

(iii) Student loan programs

2. State Aid:

Most of the States offer financial aid to the residents or non-residents studying in a college residing in their state.

3. Institutional Assistance:

Institutional assistance is a kind of aid provided by the college or the institution.

4. Private Financing:

Private financing is a kind of loan or financial grant provided by banks or other loan providers.

5. Scholarships:

A scholarship is provided to the students every year based on their achievements, academic qualifications, and their talent.

6. Corporate / Employer Funding:

Corporate/ employer funding is a kind of financial aid provided by the employer if the student is enrolled in a job. The college or the educational fee will be repaid by the employer.

Justification for the correct and incorrect

Grants: This answer is correct.

Grants are financial assistance in which the students do not have to pay the money back. Grants are not loans, in private loans, the students have to pay back.

Private loans: This answer is incorrect.

Private loans are the loans provided by the banks or the lenders, which have to be paid back.

Federal loans: This answer is incorrect.

Federal loans are a kind of loan which has is to be paid back by the students.

All of the above: This answer is incorrect.

All of the above cannot be the correct answer as in the second and the third option, the private loans, and the federal loans have to be paid back by the students.

Thus,grants are a kind of financial assistance or financial aid which is not required to be paid back.

Learn more:

1. Collateral security:

2. Charging fee in case of credit card

3. Consequences of non-payment of monthly credit card payment

Answer details:

Grade: High School

Subject: Business Studies

Chapter: Financial Assistance

Keywords: Which of the following, types of financial aid, do not require you to pay, the money back, federal types of financial aid, state aid, institutional assistance, private financing, scholarships, corporate, employer funding, federal loans, private loans, all of the above.